Answer:
$1,653
Explanation:
Austin can only file a mileage expense deduction for the miles he drives for business purposes; only 2,850 miles were driven for business purposes from his to the gym. Miles driven from your home to work or vice versa are not deductible.
to calculate the mileage expense we multiply the amount of qualifying miles times the standard deduction rate = 2,850 miles x $0.58 per mile = $1,653
Answer and Explanation:
The journal entry is shown below:
Cash $1,050
Cash short and over $9
Sales revenue $1,059
(Being the cash collection is recorded)
Here we debited the cash as it increased the assets and credited the sales revenue as it also increased the revenue and the difference is debited to cash short and over
