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:

Lawsuit

A legal case where a party seeks to enforce or defend a legal right through a court process.

Assignment

The transfer of rights, duties, or interests under a contract from one party to another.

Donee Beneficiary

A third party who benefits from a contract wherein the promisor agrees to give a gift or confer a benefit directly to the donee beneficiary.

Promisee

The individual or party to whom a promise or commitment is made within the context of a contract.