Michael's Sneaker Store, Inc., deals mainly in sneakers of the Jordan brand. As well as operations on Ebay, the company operates a retail store in a state where the sales tax is 5%. The law in that state provides that the sales tax collected by the retailer must be remitted to the state during the month following the month in which sales occurred. If the sales tax is remitted promptly to the state - defined as on or before the fifth of the month following the sale, the retailer may keep 3% of the sales tax collected. On August 10, Valley remitted $40,740 tax to the state tax division for July sales. 

What was the level of sales in July that was subject to sales tax? 

Answer rating: 100% (QA)

To determine the level of sales subject to sales tax in July we can use the following steps Lets a... View the full answer