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Exercise 9-2 Recording known current liabilities LO C2 On July 15, Piper Co. sold $10,000 of...

Exercise 9-2 Recording known current liabilities LO C2

  1. On July 15, Piper Co. sold $10,000 of merchandise (costing $5,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions.
  2. On November 3, the Milwaukee Bucks sold a six game pack of advance tickets for $300 cash. On November 20, the Bucks played the first game of the six game pack (this represented one-sixth of the advance ticket sales). Record the entries for the November 3 and November 20 transactions.
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July 15 Cash 10,400
Sales 10,000
Sales tax payable 400
Cost of Goods Sold 5,000
Inventory 5,000
Aug 1 Sales tax payable 400
Cash 400

.

Nov 3 Cash 300
Unearned Ticket Revenue 300
Nov 20 Unearned Ticket Revenue 50
Ticket revenue (300/6) 50

Comment if you face any issues

> August 1st is being marked wrong on my behalf.

ariel friday Wed, Feb 2, 2022 4:32 PM

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