Asked by Shreyans Nanavati on Apr 29, 2024
Verified
The amount of the total cash paid to the seller for merchandise purchased for consumption would normally include
A) only the list price
B) only the sales tax
C) the list price plus the sales tax
D) the list price less the sales tax
Sales Tax
A tax imposed by a government on the sale of goods and services, typically calculated as a percentage of the selling price.
List Price
The manufacturer's suggested retail price (MSRP) of a product before any discounts, allowances, or rebates are applied.
- Record the journal entries for the sale of merchandise, including scenarios with sales tax.
Verified Answer
FJ
Franicko JacksonMay 01, 2024
Final Answer :
C
Explanation :
The amount of total cash paid to the seller for merchandise purchased for consumption would include the list price of the merchandise plus the sales tax. This is because the sales tax is added to the listed price of the item to arrive at the total amount due. Therefore, the total cash paid would be the sum of both the list price and the sales tax.
Learning Objectives
- Record the journal entries for the sale of merchandise, including scenarios with sales tax.