Ask Question
BusinessBusiness
15 May, 18:46

Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $13,000 of cash sales that are subject to an 8% sales tax, what is the journal entry to record the cash sales?

+1
Answers (1)
  1. 15 May, 20:36
    0
    Answer: $1040

    Explanation:

    You would debit the accounts receivable for the entire amount of the sale.

    then you would credit the sales account for the sales amount (minus the sales tax amount)

    the add a credit to the sales tax liability account for the amount of sales taxes
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $13,000 of cash sales that are subject ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
At April 30, Metlock, Inc. has the following bank information: Cash balance per bank $6200 Outstanding checks $380 Deposits in transit $750 Credit memo for interest $15 Bank service charge $30 What is Metlock adjusted cash balance on April 30?
Answers (1)
If the price is $4 for a call option with strike of $30, what are the payoff and profit on a long position, if the option expires when the stock is $38.5
Answers (1)
A group of users in the Research Department has access to sensitive company information, so you want to be sure the group members' passwords are strong, with a minimum length of 12 characters and a requirement to change their passwords every 30 days.
Answers (1)
A process by which banks designate an area within which they refuse to lend money for improvements is
Answers (2)
On January 1, 2018 when the effective interest rate was 12%, Philips Co. issued bonds with a maturity value of $200,000. The stated rate of interest is 12% and the bonds pay interest semi-annually. Philips Co.
Answers (2)
New Questions in Business
Implicit transaction
Answers (1)
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $8 each or to produce them in-house.
Answers (2)
A stock's holding period return represents: a. the return from a stock relative to the return from a specific portfolio. b. the total return earned over a specific period through buying and selling an asset. c.
Answers (1)
Evaluate the current China/Taiwan logistics costs. Assume a current total volume of 190,000 CBM and that 89 percent is shipped direct from the supplier plants in containers.
Answers (1)
Given the pork supply function Q = 178 + 40p - 60p_h. how does the supply function, Q = 88 + 40p. change if the price of hogs increases from $1.50 to $1.90 per kg? If the price of hogs increases to $1.90 per kg, then the supply function will be Q =
Answers (1)
Home » Business » Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $13,000 of cash sales that are subject to an 8% sales tax, what is the journal entry to record the cash sales?
Sign Up Forgot Password?