a. Sold $22,600 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $13,600.
b. Paid $51,668 to the state sales tax department for taxes collected.
Answer:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhQrpY_b9TuEFY-nkiJ5HrYGh6Agv90H2cZFpFvPB9OnO4l7N1DKBP6yxnsGEyqsyAspRFhb00WB62e9Y84fo3iH67mR4jZNx2pTSSTKJkQ93ApKsNyBmK4g56HAvBr3UD6pe443wZJSH6y/s400/Ex.+6%25E2%2580%259318.png)
a.
Accounts Receivable 23,730
Sales 22,600
Sales Tax Payable ($22,600 × 5%) 1,130
Cost of Merchandise Sold 13,600
Merchandise Inventory 13,600
b.
Sales Tax Payable 51,668
Cash 51,668
What is the normal balance of the following accounts: (a) Cost of Merchandise Sold, (b) Delivery Expense, (c) Merchandise Inventory, (d) Sales, (e) Sales Discounts, (f) Sales Returns and Allowances, (g) Sales Tax Payable?
Answer:
a. debit
b. debit
c. debit
d. credit
e. debit
f. debit
g. credit
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