Question

For a sale on account of $1,000 with sales tax of $80, the amount recorded in the accounts receivable debit column of a sales journal is

a. $1,080
b. $1,000
c. $920
d. $80

Answer 1

The amount to be recorded in the accounts receivable debit column of a sales journal for a sale of $1,000 with $80 in sales tax is $1,080.

Step-by-step explanation:

For a sale on account of $1,000 with a sales tax of $80, the amount recorded in the accounts receivable debit column of a sales journal is $1,080. When recording the sale, both the principal amount of the sale and the sales tax are included in the accounts receivable. Therefore, you add the $1,000 sale amount and the $80 sales tax together to get the total amount that the customer owes, which is indeed option (a) $1,080.