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com/platform/mod/quiz/attempt.php?attempt-1706575&page; 17 ows Marketplac windows Media Windows D Raising cash still tou D 100 Must Read Book D AFC- D current opportun E Menu QUESTION 18 In e answer Points out of 11.00 PFlag question Excise and Sales Tax Calculations Allied Company has just billed a customer for $2,102, an amount that Includes a ten percent excise tax and a six percent state sales tax a. What amount of revenue is recorded? b. Prepare a journal entry to record the transaction on the books of Allled Company. Round all answers to the nearest dollar. a. Amount of recorded revenue s 0 b. General Journal Date Description Debit Credit Dec.31 Excise Tax Payable Sales Tax Payable To record sale on account subject to excise tax and sales tax. Please answer all parts of the question. 2% remai

Explanation / Answer

working: Amount of recorded revenue Let imagine the sale amount is X. X + X * 10% + X * 6% =   2102 X + .10X + .06X = 2102 1.16X = 2102 X   =   2102 /1.16 X = 1812 Excise Tax =   1812 * .10 $        181 Sales Tax = 1812 * .06 $        109 Part a Amount of Recorded Revenue    =      $ 1812 Part b Journal Entry Accounts Receivable a/c dr 2102 To Excise Tax Payable A/c 181 To Sales Tax Payable A/c 109 To Sales A/c 1812 ( to record sales on account subject to excise tax and sales tax)

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