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Peterson Company Billed Its Customers a Total of $840,000 for the Month

question 258

Essay

Peterson Company billed its customers a total of $840,000 for the month of November. The total includes a 5% state sales tax.
Instructions
(a) Determine the proper amount of revenue to report for the month.
(b) Prepare the general journal entry to record the revenue and related liabilities for the month.


Definitions:

Unconditional Positive Regard

An attitude of total acceptance and support, regardless of what a person says or does, primarily important in client-centered therapy.

Carl Rogers

An influential American psychologist and among the founders of the humanistic approach to psychology, known for his client-centered therapy.

Nonjudgmental

Adopting an attitude of acceptance and openness, refraining from passing judgment on or criticizing others' feelings, behaviors, or thoughts.

Active Listening

The process of listening attentively while someone else speaks, paraphrasing and reflecting back what is said, and withholding judgment and advice.

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