Answer:
sales tax payable 1,200 debit
cash 1,200 credit
Explanation:
To record this entry we need to understand the sales tax is not an expense for the company as is charged into the invoice and paid by the customers.
The company is an intermediate agent between the customer and the government. The company's role is to collects the tax and pay to the government. We need to record the payment of 1,200 to the government thus, we write-off the sales tax payable and credit the cash give away to the IRS
B. Understanding what you want!
Answer:
The answer is A.Entertainment 10%, Clothing 10%.
Explanation:
