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Lady bird [3.3K]
3 years ago
9

In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Ivan

hoe Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $29,500 and sales taxes $1,475. 2. Pharoah Company does not segregate sales and sales taxes. Its register total for April 15 is $18,530, which includes a 9% sales tax.
Business
1 answer:
Alona [7]3 years ago
7 0

Answer:

Requirement: Prepare the entry to record the sales transactions and related taxes.

1.   Date      Account Titles and Explanation     Debit     Credit

   Apr. 10   Cash                                                 $30,975

                        Sales Revenue                                          $29,500

                        Sales Tax Payable                                     $1,475

                 (To record Cash sales along with sales tax)

2. Date      Account Titles and Explanation    Debit     Credit

   Apr. 15   Cash                                                 $18,530

                        Sales Revenue                                          $17,000

                        Sales Tax Payable                                     $1,530

                  (To record Cash sales along with sales tax)

<u></u>

<u>Workings</u>

- Total Sales along with sales tax = $18,530, Sales Tax Rate = 9%. Sales Tax Amount = 18530*(0.09/1.09) = $1,530

- Sales Without Sales Tax = $18,530 - $1,530 = $17,000

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When a firm sells goods or services on credit, the owner needs to remember that for cash budgeting purposes ________.
miskamm [114]

Answer:

The correct option is c. she/he must account for a delay between the sale and the actual collection of the proceeds

Explanation:

As in the given question, it is mentioned that the credit sale is made, so the owner would remember the delay between the sale and the actual collection so that he knows the gap between these two.

Moreover, for cash budgeting purposes, it is necessary to remember when the owner received the cash and the date on which credit sale was made.

So, all other options are incorrect because it doesn't make any comparison between these two thing which is important for cash budgeting purposes.

Hence, The correct option is c. she/he must account for a delay between the sale and the actual collection of the proceeds

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A manager states that his process is really working well. Out of 1,500 parts, 1,477 were produced free of a particular defect an
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Answer:

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Explanation:

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4 years ago
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The real interest rate tells you how fast the purchasing power of your bank account rises over time.

<h3>What is meant by the real interest rate?</h3>
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<h3>What is real and nominal interest rate?</h3>
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<h3>Why real interest rate is important?</h3>
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Learn more about real interest rate here:

brainly.com/question/6106690

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2 years ago
If women only have two children, what will our population do by 2150? grow to 8.7 billion grow to 10.8 billion decrease to 4 bil
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The correct answer is : <span>grow to 10.8 billion</span>
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3 years ago
Pro forma financial statements are the most comprehensive means of financial forecasting. projections of financial statements fo
nadezda [96]

Answer:

The correct answer is All of the options are true.

Explanation:

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The Proforma Financial Statements are states that contain, in whole or in part, one or more assumptions or hypotheses in order to show what the financial situation or the results of the operations would be if they occurred.

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