CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 2 Answer saved Marked out of 5
ID: 2519465 • Letter: C
Question
CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 2 Answer saved Marked out of 5.00 Flag question Excise and Sales Tax Calculations Allied Company has just billed a customer for $1,102, an amount that includes a ten percent excise tax and a six perce sales tax. a. What amount of revenue is recorded? b. Prepare a journal entry to record the transaction on the books of Allied Company. Round all answers to the nearest dollar a. Amount of recorded revenue $ 1,000 b. General Journal Date Description Debit Credit Dec.31 Accounts Receivable s 1,102 Excise Tax Payable 36 Sales Tax Payable Sales 1,000 To record sale on account subject to excise tax and sales tax.Explanation / Answer
total tax excise 10 sales tax 6 total tax 16 amount of recorded revenue = 1102/116*100 950 Date Description Debit Credit 31-Dec Accounts receivable 1,102 excixe tax payable (950*10%) 95 Sales tax payable (950*6%) 57 Sales revenue 950 1102