A customer purchases a pair of leopard spot fuzzy dice for $30 and the purchase is subject to 8% tax. What’s the total amount Crankshaft Customs should collect from the customer? (Format your answer as $xx.xx)

Correct! 0.08*$30=$2.40 tax $30 + $2.40=$32.40 total due.

Which account is missing in this journal entry for the $32.40 sale that includes $2.40 in tax? <table> <tbody> <tr> <td> Account </td> <td> Debit </td> <td> Credit </td> </tr> <tr> <td> Cash </td> <td> $32.40 </td> <td> </td> </tr> <tr> <td> ? </td> <td> </td> <td> $2.40 </td> </tr> <tr> <td> Sales Revenue </td> <td> </td> <td> $30.00 </td> </tr> </tbody> </table>

Correct! The $2.40 would be recorded in Sales Tax Payable, since it will need to be remitted to the applicable taxing authority.

Sales Tax Liability Practice Quiz » Week 2 » Liabilities And Equity In Accounting

Q: In the same state, shoes, bananas, and a haircut would all be subject to the same sales tax rate.

Correct. Depending on the state or local tax law, different items may be subject to different rates.

Q: Funds in the Sales Tax Payable account can be treated as if they were Sales Revenue.

Correct. Sales Tax Payable is a liability account. Those funds represent money owed to the tax agency (or agencies). They should not be recorded as revenue.

Q: Which feature of accounting software can provide information about how much sales tax is owed to each tax agency?

Correct. Sales Tax Liability Report can provide information about how much sales tax is owed to each tax agency.

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Q:

In the same state, shoes, bananas, and a haircut would all be subject to the same sales tax rate.

View Solution

Q:

Funds in the Sales Tax Payable account can be treated as if they were Sales Revenue.

View Solution

Q:

Which account is missing in this journal entry for the $32.40 sale that includes $2.40 in tax? Account Debit Credit Cash $32.40 ? $2.40 Sales Revenue $30.00

View Solution

Q:

A customer purchases a pair of leopard spot fuzzy dice for $30 and the purchase is subject to 8% tax. What’s the total amount Crankshaft Customs should collect from the customer? (Format your answer as $xx.xx)

View Solution

Q:

Which feature of accounting software can provide information about how much sales tax is owed to each tax agency?

View Solution

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Sales Tax Liability Practice Quiz

Q:

In the same state, shoes, bananas, and a haircut would all be subject to the same sales tax rate.

Q:

Funds in the Sales Tax Payable account can be treated as if they were Sales Revenue.

Q:

Which account is missing in this journal entry for the $32.40 sale that includes $2.40 in tax? Account Debit Credit C​ash $3​2.40 ?​ $2​.40 S​ales Revenue $30.00

Q:

A customer purchases a pair of leopard spot fuzzy dice for $30 and the purchase is subject to 8% tax. What’s the total amount Crankshaft Customs should collect from the customer? (Format your answer as $xx.xx)

Q:

Which feature of accounting software can provide information about how much sales tax is owed to each tax agency?

Which account is missing in this journal entry for the $32.40 sale that includes $2.40 in tax? Account Debit Credit Cash $32.40 ? $2.40 Sales Revenue $30.00