Excise and sales tax calculations.A. What amount of revenue is recorded?B. Prepare a general journal entry to record the transaction on the books of Clifford company.Round all answers to the nearest dollar.The options for the description dropbox are: accounts receivable, excise tax payable, sales tax payable, sales. Excise and Sales Tax CalculationsClifford Company has just billed a customer for $1,100, an amount that includes a eight percent excise tax and a two percent state sales tax.a. What amount of revenue is recorded?b. Prepare a general journal entry to record the transaction on the books of Clifford Company.Round all answers to the nearest dollar.a. Amount of recorded revenue $ 0b.General JournalDescriptionDebitCredit◆Excise Tax PayableSales Tax Payable◆To record sale on account subject to excise tax and sales tax.DateDec.31$0 $OOOܘ ܘ ܘ ܘ

Revenue: It implies to the income that is earned by the business during it's course of trading…

Answered: Excise and Sales Tax Calculations…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Excise and sales tax calculations. A. What amount of revenue is recorded? B. Prepare a general journal entry to record the transaction on the books of Clifford company. Round all answers to the nearest dollar. The options for the description dropbox are: accounts receivable, excise tax payable, sales tax payable, sales.

Excise and Sales Tax Calculations
Clifford Company has just billed a customer for $1,100, an amount that includes a eight percent excise tax and a two percent state sales tax.
a. What amount of revenue is recorded?
b. Prepare a general journal entry to record the transaction on the books of Clifford Company.
Round all answers to the nearest dollar.
a. Amount of recorded revenue $ 0
b.
General Journal
Description
Debit
Credit
◆
Excise Tax Payable
Sales Tax Payable
◆
To record sale on account subject to excise tax and sales tax.
Date
Dec.31
$
0 $
OOO
ܘ ܘ ܘ ܘ

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