rchandise, and the total amount is credited to Sales. During January, Sales was credited $318,000. The January 31 adjusting entry to account for a 6% state sales tax would be) Sales 18,000 Sales Taxes Payable 18.000

rchandise, and the total amount is credited to Sales. During January, Sales was credited $318,000. The January 31 adjusting entry to account for a 6% state sales tax would be) Sales 18,000 Sales Taxes Payable 18.000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 6RE: Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of...

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Question

(Jiffy Copies includes the amount of sales taxes collected directly in the price charged for
merchandise, and the total amount is credited to Sales. During January, Sales was credited
for $318,000. The January 31 adjusting entry to account for a 6% state sales tax would be)
а.
Sales
18,000
Sales Taxes Payable
Sales Tax Expense
Sales Taxes Payable
18,000
b.
18,000
18,000
с.
Sales
19,080
Sales Taxes Payable
Sales Tax Expense
Sales Taxes Payable
19,080
d.
19,080
19,080

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