For a Retailer Required to Collect Sales Taxes from Customers

question 132

Multiple Choice

For a retailer required to collect sales taxes from customers, all of the following adaptations would be made to the sales journal except:

• A) A Sales Taxes Payable debit column would be added.
• B) There would be a separate Sales credit column.
• C) Column totals would continue to be posted as usual.
• D) A Sales Taxes Payable credit column would be added.
• E) There would be a separate Accounts Receivable debit column.

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Definitions:

Wage Rate

The amount of compensation a worker receives per unit of time (e.g., hour, day) or per task completed.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production.

Purely Competitive

A market structure characterized by many sellers offering identical products, leading to a high degree of competition.

Purely Competitive

A market structure characterized by many buyers and sellers, with all firms selling identical products and no single buyer or seller able to influence the market price.