Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO T

Question

Date

Account Titles and Explanation

Debit

Credit

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Date

Account Titles and Explanation

Debit

Credit

In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.
1. Carla Vista Co. enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $26,500 and sales taxes $1,325. 2. Wildhorse Co. does not segregate sales and sales taxes. Its register total for April 15 is $14,980, which includes a 7% sales tax.

Explanation / Answer

Ans.1 Date Accounts Titles and Explanation Debit Credit Apr. 10 Cash 27825 To Sales 26500 To Sales Tax Payable 1325 Ans.2 Date Accounts Titles and Explanation Debit Credit Apr. 15 Cash 14980 To Sales 14000 To Sales Tax Payable 980 *Calculation of sales related Wildhorse co. 14980 / 107 * 100 14000 *We assume that sales is 100 and cash has included 7% sales tax (given) so, cash = 107% sales = 100% sales tax =    7%

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.