Ed's Bookstore Has Collected $750 in Sales Taxes During April

question 180

Short Answer

Ed's Bookstore has collected $750 in sales taxes during April. If sales taxes must be remitted to the state government monthly, what entry will Ed's Bookstore make to show the April remittance?

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Definitions:

Ownership

The state or fact of legal possession and control over property, which includes the rights to use, sell, or lease it.

Deferred Income Tax Asset

A tax asset that reflects a company's ability to reduce future tax liability due to deductible temporary differences.

Consolidated Income Tax Return

A tax document filed by a parent company encompassing all of its subsidiaries, combining their financial statements for tax purposes.

Tax Rate

The percentage at which an individual or corporation is taxed. The tax rate can vary depending on income level, type of income, or type of goods.