Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Get quick and reliable solutions to your questions from a community of seasoned experts on our user-friendly platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Peterson Company billed its customers a total of $840,000 for the month of November. The total includes a 5% state sales tax.
(a) Determine the proper amount of revenue to report for the month.
(b) Prepare the general journal entry to record the revenue and related liabilities for the month.

Sagot :

Answer:

a. $800000

b. Account receivable Dr. 840000  

                To sales revenue  800000

                To sales tax payable  40000

Explanation:

a. Given the total billed amount = $840000

    Sales tax = 5%

Total revenue for the month = 840000 x (100 / 105) = $800000

b. Account receivable Dr. 840000  

                To sales revenue  800000

                To sales tax payable  40000

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.