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sales tax far and wide broadband provides internet connection services to customers living in remote areas. during february 2020, internet services were sold, on credit, to a customer for $181,000 before taxes. the customer must also pay the following taxes on these charges: state of kansas sales tax of 6% federal excise tax of 0.2% state of kansas excise tax of 0.4% required: assuming far and wide collects these taxes from the customer, what journal entry would far and wide make to record the sale? if an amount box does not require an entry, leave it blank.

Sagot :

anthougo

Assuming Far and Wide collects these sales taxes from the customer, the journal entry that Far and Wide would make to record the sale is as follows:

Journal Entry:

Debit Accounts Receivable $192,949

Credit Service Revenue $181,000

Credit State Sales Tax Payable $10,860

Credit Federal Excise Tax Payable $363

Credit State Excise Tax Payable $726

What are the journal entries for sales taxes?

When sales taxes are involved in a credit sale transaction, the journal entry includes debiting the Accounts Receivable account and crediting the Sales Revenue account and Sales Tax Payable account.

Reverse journal entries are made when the customer pays and when the collecting organization remits the sales taxes to the federal or state government.

Transaction Analysis:

Accounts Receivable $192,949 Service Revenue $181,000 State Sales Tax Payable $10,860 Federal Excise Tax Payable $363 State Excise Tax Payable $726

Learn more about journalizing sale tax transactions at https://brainly.com/question/22784782

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