A state requires quarterly sales tax returns to be filed with the sales tax bureau by the 20th day following the end of the calendar quarter. However, the state further requires that sales taxes collected be remitted to the sales tax bureau by the 20th day of the month following any month such collections exceed $1,000. These payments can be taken as credits on the quarterly sales tax return.
Taft Corporation operates a retail hardware store. All items are sold subject to a 6 percent state sales tax, which Taft collects and records as sales revenue. The sales taxes paid by Tart are charged against sales revenue. Taft pays the sales taxes when they are due.
Following is a monthly summary appearing in Taft's first-quarter 1998 sales revenue account:

In its financial statements for the quarter ended March 31, 1998, Taft's sales revenue and sales taxes payable would be
Sales Sales Taxes Revenue Payable
a. $55,120 $3,120b. $53,920 $1,200c. $52,000 $3,120d. $52,000 $1,920

Transcribed Image Text:

Credit $21,200 14,840 Debit -0- January. February. March, $1,200 -0- 19,080 $55,120 $1.200