Illustration: The March 25 cash register reading for Cooley Grocery shows sales of $10,000 and sales taxes of $600 (sales tax rate of 6%), 1

Accounting May 23, 2021

Illustration: The March 25 cash register reading for Cooley Grocery shows sales of $10,000 and sales taxes of $600 (sales tax rate of 6%),

1.the journal entry is:
2.A total asset turnover ratio of 3.5 indicates that:

Expert Solution

Answer 1:

Date	Account title and explanation	Debit	Credit
25-Mar	Cash	$ 10,600
	Sales revenue		$ 10,000
	Sales tax payable		$ 600
	(Entry to record cash sale made including sales tax)

Answer 2:

For every $1 in assets, the firm produced $3.50 in net sales during the period

Explanation:

Asset Turnover = Sales / Average Total Assets

Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating revenue or income for the company. A higher asset turnover ratio implies that the company is operating efficiently and is able to generate solid revenue income using the assets at their disposal....

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