Maxwell Company records its sales taxes in the same account as sales revenues. The sales tax rate is 6 percent. At the end of the current period, the Sales account has a balance of USD 265,000. The amount of sales tax payable is:
Dawson Company sells fax machines. During 2010, the company sold 2,000 fax machines. The company estimates that 5 percent of the machines require repairs under warranty. To date, 30 machines have been repaired. The estimated average cost of warranty repairs per defective fax machine is USD 200. Therequired amount of the adjusting entry to record estimated product warranty payable is:
To compute interest on a promissory note, all of the following elements must be known except:a.The face value of the note.b.The stated interest rate.c.The name of the payee.d.The life of the note.e.None of the above.
Keats Company issued its own USD 10,000, 90-day, non interest-bearing note to a bank. If the note is discounted at 10 percent, the proceeds to Keats are:90/360 = .251,000 * .25 = 25010,000 – 250 = 9,750
70×200=14,00010,000 * 10% = 1,00090/360 = .251,000 * .25 = 25010,000 – 250 = 9,750