For Maxwell Ltd the Correct General Journal Entry for a Sale

question 24

Multiple Choice

For Maxwell Ltd the correct general journal entry for a sale of $6600, including GST, paid for by the customer with a bank issued credit card, is:

• A) DR Bank $6600; CR Sales $6600
• B) DR Bank $6600; CR Sales $6000; CR GST payable $600
• C) DR Bank $6000; DR GST payable $600; CR Sales $6600
• D) DR Accounts receivable $6600; CR Sales $6000; CR GST payable $600

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Definitions:

Plaintiff

The party who initiates a lawsuit before a court against the defendant, seeking a legal remedy for a grievance.

Harmed

Suffered damage or injury, either physically, financially, emotionally, or legally.

Long Arm Statutes

These are laws that give a state the authority to exercise jurisdiction over individuals or businesses that do not reside in the state but have conducted activities within the state that caused harm.

Minimum Contacts

A legal standard determining whether a court has jurisdiction over a defendant, based on the defendant's connections to the area where the court is located.