6800*.64= 4352
Ernesto payed $ 4352 in tax
Answer:
C) credit Sales Tax Payable for $21
Explanation:
Based on the information given In the same transaction, they must also CREDIT SALES TAX PAYABLE FOR $21 Calculated as:
First step is to calculate the sales tax element
Sales tax element = $371*6/106
Sales tax element= $21
Now let calculate what the Price exclusive of sales tax would be
Price exclusive of sales tax=$371-$21
Price exclusive of sales tax= $350
The correct journal entry should be:
Dr Cash $371
Cr Sales revenue $350
($371-$21)
Cr Sales tax payable $21
<span>Variances allow the business owner to supervise
their business better by taking well-versed decisions based on how the business
really performed against the budgeted performance. Additionally, it also
highlights reasons or different causes for the disparity in the projected
income or expenses.</span>
Answer:
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