Question: 1. Like all retailers, Hollister is required to collect sales tax to be remitted to state and local government authorities. Assume a local store has cash proceeds from sales of $5,325, including $325 in sales tax. What is the sales tax rate? Provide the journal entry to record the proceeds.
2. If $10 million of Dell Computer Corporation's $130 million notes payable is due in the next year, how will the firm present this debt within the current and longterm liabilities sections of the current year's balance sheet?