On July 15, Piper Company sold $26,000 of merchandise (costing $13,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. On November 3, the Milwaukee Bucks sold a six-game pack of advance tickets for $780 cash. On November 20, the Bucks played the first game of the six-game pack (this represented one-sixth of the advance ticket sales). Exercise 9-2 (Algo) Recording Known Current Liabilities LO C2 Record entries for the July 15 and August 1 transactions. Record the entries for the November 3 and November 20 transactions.
A. July 15: Debit Cash $26,000; Credit Sales $26,000
August 1: Debit Sales Tax Payable $1,040; Credit Cash $1,040
November 3: Debit Cash $780; Credit Advance Ticket Sales $780
November 20: Debit Unearned Revenue $130; Credit Cash $130
B. July 15: Debit Cash $26,000; Credit Sales $26,000
August 1: Debit Cash $1,040; Credit Sales Tax Payable $1,040
November 3: Debit Cash $780; Credit Advance Ticket Sales $780
November 20: Debit Cash $130; Credit Unearned Revenue $130
C. July 15: Debit Cash $26,000; Credit Sales $26,000
August 1: Debit Sales Tax Payable $1,040; Credit Cash $1,040
November 3: Debit Advance Ticket Sales $780; Credit Cash $780
November 20: Debit Unearned Revenue $130; Credit Cash $130
D. July 15: Debit Cash $26,000; Credit Sales $26,000
August 1: Debit Cash $1,040; Credit Sales Tax Payable $1,040
November 3: Debit Advance Ticket Sales $780; Credit Cash $780
November 20: Debit Cash $130; Credit Unearned Revenue $130
