The Print Shoppe Had Sales on Account of $4,500 Which

question 111

Multiple Choice

The Print Shoppe had sales on account of $4,500 which were subject to state sales tax of 9.5%.The entry to record the sales would be to:

• A)debit Accounts Receivable $4,500;credit Sales Revenue $4,500.
• B)debit Accounts Receivable $4,500;debit Sales Tax Payable $427.50;credit Sales Revenue $4,927.50.
• C)debit Accounts Receivable $4,927.50;credit Sales Revenue $4,927.50.
• D)debit Accounts Receivable $4,927.50;credit Sales Revenue $4,500;credit Sales Tax Payable $427.50.

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Definitions:

Foreign Goods

Products and services that are produced in one country and then sold and consumed in other countries.

Domestic Purchases

Transactions involving goods and services within a country's own borders.

Net Exports

The value of a country's total exports minus its total imports; it's a component of a nation's Gross Domestic Product (GDP).

Foreign Goods

Products or commodities that are produced in one country and then imported into another, making them external to the domestic economy.