In a particular state, the sales tax rate is 5 percent of sales. The retailer is allowed

Question:

In a particular state, the sales tax rate is 5 percent of sales. The retailer is allowed to record both the selling price and the tax in the same account. Explain how to compute the sales tax due when this method is used.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

College Accounting A Contemporary Approach

ISBN: 978-0077639730

3rd edition

Authors: David Haddock, John Price, Michael Farina

See More Books

Question Posted: May 25, 2016 04:28 AM

See More Questions

The Campus Book Store sells books and other supplies to students in a state where the sales tax rate is 7 percent. The Campus Book Store engaged in the following transactions for 2010. Sales tax of 7...
The University Book Store sells books and other supplies to students in a state where the sales tax rate is 7 percent. The University Book Store engaged in the following transactions for 2012. Sales...
The Rebel Book Store sells books and other supplies to students in a state where the sales tax rate is 7 percent. The Rebel Book Store engaged in the following transactions for 2013. Sales tax of 7...
Select only 2. Two questions which can be used to address ethical issues impacting organizations and Human Resource Management include: What would my Supervisor say? Does this behavior or result meet...
BizKid Companys adjusted trial balance on August 31, 2011, its fiscal year-end, follows. On August 31, 2010, merchandise inventory was $25,000. Supplementary records of merchandising activities for...
The April 2013 income statement for Fabios Fashions has just been received by Diana Caffrey, Vice President of Marketing. The firm uses a variable costing system for internal reporting purposes. The...
The piece of rubber is originally rectangular. Determine the average shear strain xy at A if the corners B and D are subjected to the displacements that cause the rubber to distort as shown by the...
It is now January. The current interest rate is 5%. The June futures price for gold is $946.30, whereas the December futures price is $960.00. Is there an arbitrage opportunity here? If so, how would...
Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accounts have normal balances). General Ledger Retained Earnings Date May 31 PR Debit Account Number 318...
Plasto Corporation manufactures a variety of plastic products including a series of molded chairs. The three models of molded chairs, which are all variations of the same design, are Standard (can be...
The sales tax on a credit sale is not collected from the customer immediately. When is this tax usually entered in a firm's accounting records? What account is used to record this tax?
What two methods are commonly used to record sales involving credit cards issued by credit card companies?
Show the carbon atom that changes oxidation state during the reaction catalyzed by glyceraldehyde-3-phosphate dehydrogenase. What is the functional group that changes during the reaction?
Health care in the United States might be more effective and efficient if the system was based on the concept of the natural history of disease and the levels of prevention. Instead, there is more...
i- Draw sketches showing the relations between the fracture toughness Kic and each of the following:- Thickness, Tensile Strength Temperature Grain size ii- A long closed cylinder is made of a steel...
How does the unfamiliar trade (forex) market influence worldwide monetary administration for a situation study, and what are the key factors that impact trade rates and money risk in worldwide...
Solve the following linear program using the graphical method (graph sheet on next page). Identify the decision variables. Compute the value of the decision variables and the objective function at...
How in all actuality does exchange highlight in worldwide monetary administration contextual analyses, and which job does it play in exploiting cost differences in worldwide business sectors?
In the KLF Publications manual ?How to Have a Number One the Easy Way,? it is stated that a song ?must be no longer than three minutes and thirty seconds? (or 210 seconds). A simple random sample of...
What are multinational corporations (MNCs) and what economic roles do they play?
What account balances or other amounts are included on two different financial statements for the period? Which statements are involved?
Which of the following would not be classified as Plant and Equipment on a balance sheet? a. Prepaid insurance b. Autos c. Store equipment d. Office equipment
Examine the following adjusting entries and determine which ones should be reversed. Show the reversing entries that should be recorded in the general journal as of January 1, 20X2. Include...
4) Suppose that you are given the following information for BlackBerry's common stock: Year 2017 2018 2019 2020 2021 Price ($) 26.0 28.6 26.3 30.5 31.1 What is the arithmetic mean of the rate of...
1. Introduce and explain the Fashion Minimalism , how it came to be, e.g.: origins/inception. 2. Identify what the Fashion Minimalism and how it encompasses sustainability in the fashion industry. 3....
What are the x- intercepts of the function f(x) = (x+7)(x 6)? -

In a particular state, the sales tax rate is 5 percent of sales. The retailer is allowed

Question:

Step by Step Answer:

To gross up the sales divide total of Sales account by 105 percen...View the full answer

College Accounting A Contemporary Approach

Students also viewed these Accounting questions