Trial balance: Debit 17110 = 17110 Credits
Explanation:
Milo clothing
Journal entry
1. Dr Cash 11500
Cr Capital- Milo clothing 11500
(Issue of shares)
2. Dr Inventory 5500
Cr Cash 5500
(Purchase inventory on cash)
3.a) Dr Cost of goods sold 3300
Cr Inventory 3300
b) Dr Account receivable 5610
Cr Sales revenue 5610
(Sale of inventory)
4. Dr Advertising expense 900
Cr Cash 900
( Paid for advertising)
T-account
Cash Capital - Milo clothing
DrCr__ __ DR CR
11500 --- 5500 --- 11500
--- 900
Inventory Account receivable
DrCr__ DR Cr
5500---3300 5610 ---
Cost of goods sold Sales revenue
Dr Cr__ __ Dr Cr
3300 -- --- 5610
Advertising expense
DrCr_
900 ---
Trial Balance
Cash 5100 -- 11500 Capital-Milo clothing
Account receivable 5610 --- 5610 Sales revenue
Cost of goods sold 3300 ---
Advertising expense 900
Inventory 2200
Total Debits 17110 = 17110 Total credits
The Correct Answer is Sales tax.
Explanation:
Sales tax is the Tax forced by the government body during the sale of the goods and services at a retail level.
While payroll tax is the tax which is forced on the salary of the employees and this tax is forced by the employer. payroll taxes are directly deducted from the salaries of the employees and directly paid to the internal revenue services by the employer.