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Cool Phone Accessory Company sells a taxable pair of headphones to a customer. The sales price...

Cool Phone Accessory Company sells a taxable pair of headphones to a customer. The sales price is $100 and the sales tax is $8.25. What amount is recorded as accounts receivable from the customer?

Select one:

a. $8.25

b. $100.00

c. $91.75

d. $108.25

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Answer #1

Correct answer-----(d) $108.25

.

The accounts receivable will be debited for 108.25 which includes sales revenue of $100 and sales tax of 8.25.

The whole payment will be collected from customer.

The indirect tax is levied on customer who use it.

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