Carl's Video Includes the Amount of Sales Taxes Collected Directly $\quad 15,680$

question 60

Multiple Choice

Carl's Video includes the amount of sales taxes collected directly in the price charged for merchandise, and the total amount is credited to Sales.During January, Sales was credited for $239, 680.The January 31 adjusting entry to account for a 7% state sales tax should be

• A)
• Sales \(\quad 15,680\)
• Sales Taxes Payable \(\quad 15,680\)
• B)
• Sales Tax Expense \(\quad 15,680\)
• Sales Taxes Payable \(\quad\quad\quad 15,680\)
• C)
• Sales \(\quad 16,778\)
• Sales Taxes Payable\(\quad\quad 16,778\)
• D)
• \(\begin{array}{cc}
• \text { Sales Tax Expense } & 16,778 \\
• \text { Sales Taxes Payable } && 16,778
• \end{array}\)

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Definitions:

World Price

The international market price at which goods are traded between countries; it plays a crucial role in determining local prices and trade policies.

Exported

Goods or services sent from one country to another for sale or trade.

Imported

Goods or services brought into one country from another for sale or use.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service and what they actually receive due to higher market prices.