I wish Enry would have looked at the tag on the bed. In most places full price means including the sales tax. However I don't think you mean that. I think that was your before tax amount.
So take 30% off the original price.
There are two ways you can do that. You can take 30% of 1600 and subtract that. We'll do that now.
1600 * 30/100 = 480 dollars. Now take that off 1600
1600 - 480 = 1120
Or you can take 70% of 1600 which should give you 1120 right away.
1600 * 70/100 = 1120
Now you can add on the sales tax and again, there are two ways to do it, but I'm only going to do it one way. The quick way to add on a sales tax (or any tax) is add the % as a fraction on to 1. 1 + 7/100 = 1 + 0.07 = 1.07
1120 * 1.07 = $1198.40
You could do this the other way. 7/100 * 1120 = 78.40.
1120 + 78.40 = 1198.40
Answer:
Statement is given below.
Explanation:
Prepare the necessary journal entries as shown below:
Date Accounts Title and Explanation Ref. Debit Credit
a Accounts Receivable $ 8:780
Sales Revenue $ 8380
(To record the sales made on account)
Sales Returns and Allowances $ 215
Provision for Sales Return and Allowances $ 215
vTo record the estimated allowance on sales
b Sales Returns and Allowances ($722-$215) $ 507
Provision for Sales Return and Allowances $ 215
Accounts Receivable $ 722
(To record the allowance granted towards sales
returns)
c No entry
(Since the cash is not received and hence no
adjustment needed)
Answer: $3,672,500
Explanation:
Based on the information given in the question, the debit to cash in the journal entry to record this transaction will be:
= $3,250,000 - ($3,250,000 × 4%) + ($3,250,000 × 9%)
= $3,250,000 - $130,000 + $292,500
= $3,672,500
Therefore, the debit to cash will be $3,672,500.
Taxes paid by employees to federal and state government. Collected or withheld from one’s paycheck.
