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nikitadnepr [17]
3 years ago
15

During the month of June, Whispering Boutique recorded cash sales of $302,810 and credit sales of $130,219, both of which includ

e the 7% sales tax that must be remitted to the state by July 15. Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements.
Business
1 answer:
irina [24]3 years ago
7 0

Answer and Explanation:

The Journal entry is shown below:-

1. Sales revenue Dr, $28,656      ($121,700 + $287,673) × 7%

                To Sales tax payable $28,656

(Being sales tax payable is recorded)

Here we debited the sales revenue as it decreased the revenue while we credited the sales tax payable as  it increased the liabilities so that the proper posting could be done

Working note

Credit sales = $130,219 × 100 ÷ 107

= $121,700

Cash sales = $302,810 × 100 ÷ 107

= $287,673

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3 0
1 year ago
Knox Company has a new product with a projected selling price of $6.00 each. It estimates that it could sell 100,000 units annua
Pachacha [2.7K]

Answer:

350,000

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Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

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3 years ago
A change in the asset turnover ratio from 1.3 to 1.6 would indicate a. a decrease in the effectiveness of assets in producing sa
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Answer:

a decrease in the effectiveness of assets in producing sales by a favorable trend in using assets to generate sales.

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Assets turnover ratio = \frac{Net Sales}{Average assets}

Therefore when the ratio increases it means the level of sales has increased, with a higher rate than earlier.

Now also with this it reflects that the effectiveness of assets in producing sales as by a favorable trend, as higher the ratio more favorable it is, as depicts higher sales.

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Answer:

<em>The question option are:</em>

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How closely should the brand and corporate image usually be related?
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They should be extremely close, since corporate image is what people think of your brand :)
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