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Meaning of bad debt?
Bad debt is when a customer or client fails to pay for their service or goods. The cost of that lingering debt to the company can become a tax deduction depending on whether you are set up on an accrual or cash basis.
Which type of tax is calculated on a per-item basis?
An excise tax or sales tax is calculated on a per-item basis
What tax are you most likely to pay on a regular basis?
sales tax
When companies pay the government collected sales tax sales taxes payable is credited and cash is debited true or false?
True. When companies pay the government the collected sales tax, they credit the "Sales Taxes Payable" account, which reduces the liability, and they debit the "Cash" account to reflect the outflow of cash. This transaction effectively transfers the sales tax liability to the government.
Create a Sales journal entries with sales tax?
When you sell a product or when you buy something? Here's the answer for both situations: For a sale: Debit.......... cash or A/R Credit......... Revenue Credit......... Sales Tax payable. Then, when you pay the tax to the state: Debit........... Sales tax payable Credit.......... cash If it's a purchase, you don't have to record sales tax separately unless you want to. If you're capitalizing an asset, it's included in the capitalized amount. But if it's a straight expense, and you want to post the sales tax, this would be the entry: Debit........ expense account (say, for example, office expense) Debit........ sales tax Credit....... cash or A/P
What are the different bases of accounting?
There are 3 basis: Cash basis, Accrual basis and Tax basis Free information online at www.etcwa.com
Meaning of bad debt?
Bad debt is when a customer or client fails to pay for their service or goods. The cost of that lingering debt to the company can become a tax deduction depending on whether you are set up on an accrual or cash basis.
Which type of tax is calculated on a per-item basis?
An excise tax or sales tax is calculated on a per-item basis
Which type of tax is calculated on per item basis?
An excise tax or sales tax is calculated on a per-item basis
What tax are you most likely to pay on a regular basis?
sales tax
When companies pay the government collected sales tax sales taxes payable is credited and cash is debited true or false?
True. When companies pay the government the collected sales tax, they credit the "Sales Taxes Payable" account, which reduces the liability, and they debit the "Cash" account to reflect the outflow of cash. This transaction effectively transfers the sales tax liability to the government.
Create a Sales journal entries with sales tax?
When you sell a product or when you buy something? Here's the answer for both situations: For a sale: Debit.......... cash or A/R Credit......... Revenue Credit......... Sales Tax payable. Then, when you pay the tax to the state: Debit........... Sales tax payable Credit.......... cash If it's a purchase, you don't have to record sales tax separately unless you want to. If you're capitalizing an asset, it's included in the capitalized amount. But if it's a straight expense, and you want to post the sales tax, this would be the entry: Debit........ expense account (say, for example, office expense) Debit........ sales tax Credit....... cash or A/P
What registers can handle sales tax?
The Royal 115CX Electronic Cash Register does tax automatic for you.
Is sales tax included in Gross sales?
Sales tax is not included in gross sales. For example when an item is sold for a total of $105 including $5 in sales tax the proper journal entry is a debit of $105 to cash, credit of $100 to sales, and a $5 credit to the sales tax payable account. The liability for sales tax should appear on the balance sheet.
Is sales tax required at the time of sale on a cash sale?
Yes.
What is the tax treatment for bad debts?
If your business accounting system is on accrual basis, you can claim a deduction in your tax return to claim any bad debts so that you don't pay tax on the income you didn't actually end up receiving. This can only be done after you have taken all the necessary steps to get the money owed to you. If your business accounting system in on cash basis you wouldn't have declared the debt previously as income so nothing is affected, no deduction needs to be made.
Do visitors have to pay sales tax in US?
Yes, anything you buy, even with cash you have to pay sales tax. The amount varies depending on the state.
