Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is subject to a 7% state sales tax. The entry to journalize the sale would include a credit to O a Sales for $5,580 O b. Sales Tax Payable for $420 O c. Cash for $6,000 O d. Sales for $6,420

Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is subject to a 7% state sales tax. The entry to journalize the sale would include a credit to O a Sales for $5,580 O b. Sales Tax Payable for $420 O c. Cash for $6,000 O d. Sales for $6,420

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 7MCQ

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Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is subject to a 7% state sales tax. The entry to journalize the sale would include a credit to
Oa. Sales for $5,580
b. Sales Tax Payable for $420
c. Cash for $6,000
d. Sales for $6,420

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