Question

Crawford Company has total proceeds (before segregation of sales taxes) from sales of $7,155. If the sales tax is 6%, the amount to be credited to the account Sales Revenue is:

Answer 1

Answer:

$6,726

Explanation:

If Crawford Company has total proceeds (before segregation of sales taxes) from sales of $7,155. If the sales tax is 6%, the amount to be credited to the account Sales Revenue is:

Sales Proceeds - 7,155

less: Sales Tax -    429

Sales Revenue -  6,726

Sales tax is included in revenue but not included in net sales. Sales revenue does not include sales tax collected by the business.