A company records sales tax at the time a sale is made. In October, company...
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A company records sales tax at the time a sale is made. In October, company sales were $34,000. The sales tax rate is 8.1% Which entry should the company use to record the sales and related sales tax? 1) Debit sales revenue $31,452, debit sales taxes payable $2,548, credit cash $34,000 2) Debit cash $36,754, credit sales revenue $34,000, credit sales taxes payable $2,754 3) Debit sales revenue, $34,000, debit sales taxes payable $2,754, credit cash $36,754 4)Debit cash $34,000, credit sales revenue $31,452, credit sales taxes payable $2,548
A hardware retailer recently purchased $1,000,000 of lawn mowers from a local manufacturer with terms 2/10, n/30.
How should this transaction be reported on the balance sheet?
Returnable cash deposits
Unearned revenue
Accounts payable
Notes payable
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