Answer Happy

11 points Cantrell Company is required by law to collect and send sales taxes to the state. If Cantrell has $12,000 of cash sales that are subject to an 9% sales tax, what is the journal entry to record the cash sales? Multiple Choice O Debit Sales Taxes Payable $1,080; debit Cash $10.920, credit Sales $12,000 Debit Accounts Receivable $13,080; credit Sales $12,000; credit Sales Taxes Payable $1,080. Debit Cash $12.000, credit Sales $12,000, and record the taxes when paid Debit Cash $12,000, credit Sales $10,920, credit Sales Taxes Payable $1,080 Debit Cash $13,080, credit Sales $12,000 credit Sales Taxes Payable $1,060

14 On December 1, Watson Enterprises signed a $25,000, 60-day, 6% note payable as replacement of an account payable with Erikson Company. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.) 2 points Multiple Choice O O O 50 $130 $520 $1560 $260