Figure 6-23 -Refer to Figure 6-23.Which of the Following Is Correct

question 61

Multiple Choice

Figure 6-23
-Refer to Figure 6-23.Which of the following is correct?

• A)The entire burden of the tax falls on sellers,and none of the burden of the tax falls on buyers.
• B)One-third of the burden of the tax falls on buyers,and two-thirds of the burden of the tax falls on sellers.
• C)One-half of the burden of the tax falls on buyers,and one-half of the burden of the tax falls on sellers.
• D)Two-thirds of the burden of the tax falls on buyers,and one-third of the burden of the tax falls on sellers.

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Definitions:

Returned Merchandise

Returned merchandise involves items that have been sold and then later returned by the customer, typically requiring the business to refund the customer's money or exchange the product.

General Journal Entry

The basic method of recording financial transactions, involving debits and credits, in the general journal.

Sales Tax

A tax levied by governments on the sale of goods and services, typically calculated as a percentage of the retail price.

Credit Sale

Transactions where goods or services are sold by providing credit to the customer, with payment to be received at a later date.