Perfume Depot sells two different tiers of perfume products to customers. They charge $30 for tier 1 perfume and $100 for tier 2 perfume. The sales tax rate is 4.5%. During the month of October, Perfume Depot sells 75 tier 1 perfumes, and 60 tier 2 perfumes.
A. What is the total tax charged to the customer per tier 1 perfume? What is the overall charge per tier 1 category perfume?
B. What is the total tax charged to the customer per tier 2 perfume? What is the overall charge per tier 2 category perfume?
C. How much sales tax liability does Perfume Depot have for the month of October?
D. What accounts are used to recognize this tax situation for the month of October?
E. When Perfume Depot remits payment to the sales tax governing body, what happens to the sales tax liability?