Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Exercise 10-4 Date Account Titles and Explanation Debit Credit Show List of Acco

ID: 2465274 • Letter: E

Question

Exercise 10-4

Date

Account Titles and Explanation

Debit

Credit

Show List of Accounts

Link to Text

Date

Account Titles and Explanation

Debit

Credit

Exercise 10-4

In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales.
1. Furcal Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $38,000 and sales taxes $1,900. 2. Crystal Company does not segregate sales and sales taxes. Its register total for April 15 is $17,280, which includes a 8% sales tax.

Explanation / Answer

Prepare the entries to record the sales transactions and related taxes for Furcal Company:

April 10

Debit Cash $39900

Credit Sales Revenue $38000

Credit Sales Tax payable $1900

Prepare the entries to record the sales transactions and related taxes for Crystal Company:

April 15

Debit Cash $17280

Credit Sales Revenue $1600

Credit Sales Tax payable $1280