Asked by Samantha Alvarez on Jul 09, 2024
Verified
A sale of $750 on account subject to a sales tax of 6% would be recorded as an account receivable of $750.
Sales Tax
A government-imposed charge on the sale of goods and services.
Account Receivable
Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.
- Grasp the principles behind recording sales transactions and their impact on accounts receivable and revenue recognition.
Verified Answer
ES
Eliza SommersJul 14, 2024
Final Answer :
False
Explanation :
The correct account receivable would be $750 plus the 6% sales tax, making the total amount receivable higher than $750.
Learning Objectives
- Grasp the principles behind recording sales transactions and their impact on accounts receivable and revenue recognition.