Sales Revenue for a Sporting Goods Store Amounted to $525,000

question 72

Multiple Choice

Sales revenue for a sporting goods store amounted to $525,000 for the current period. All sales are on account and are subject to a sales tax of 9%. Which of the following would be included in the journal entry to record the sales?

• A)a debit to Sales Revenue for $525,000
• B)a credit to Accounts Receivable for $525,000
• C)a debit to Sales Tax Payable for $47,250
• D)a debit to Accounts Receivable for $572,250

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Definitions:

Carrying Amount

Carrying amount, also known as book value, is the value recorded on the balance sheet for a particular asset, reflecting its original cost minus any depreciation, amortization, or impairment costs.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life.

Impairment Loss

An impairment loss occurs when the carrying amount of an asset exceeds its recoverable amount, indicating the asset is not expected to generate future benefits worth its recorded value.

Accumulated Depreciation

The total amount of depreciation expense allocated to an asset since it was put into use.