Question: 8. In a particular state, the sales tax rate is 5 percent of sales. The retailer is allowed to record both the selling price and

8. 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.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related College Accounting Questions!

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...

5 8 1 A retailer recorded the following in June: cash sales $2,100; credit sales, $5,000; sales returns and allowances, $1,100. Assuming the sales tax rate is 5 percent, the entry to record the sales...

If a firm had sales of $67,000 during a period and sales returns and allowances of $6,500, its net sales were: Multiple Choice $60,500. $73,500. $67,000. $6,500. A wholesale business sells goods with...

help pls Required: a. The Massachusetts stores have $570,000 in sales. Massachusetts's sales tax rate is 5 percent; assume it exempts food items. b. The Connecticut retail stores have $456,000 in...

A retailer recorded the following in June: cash sales $2,100; credit sales, $5,000; sales returns and allowances, $1,100. Assuming the sales tax rate is 5 percent, the entry to record the sales tax...

NetCredit: Account Hon X | myFranklin for Mariah |A McGraw-Hill Connect X M Question 1 - Practice Ex X Principles of Sociological X Q course hero - Search * *Course Hero * + X C...

of Capital s 20 Submitting an external tool Available until Dec 17 at 10:59pm Homework 13: Cost of Capital Bob's is a retail chain of specialty hardware stores. The firm has 23,000 shares of stock...

journal entry A-E Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales...

Need help with 1-8 AMERICAN GRAIN COMPAN Y EQUIPMEN T REPLACEMEN T Most corporations have standard procedures for the submission of capital budgeting requests. These requests include a detailed...

Spending on health care now constitutes a significant fraction of total expenditure. Understanding the efficacy of this spending is therefore relatively important. When it comes to contagious...

The 1wheel co has just hired a new CEO Noel. The current stock price of 1wheel is $100. The new CEO will have to choose between two projects Big Wheel and Bigger Wheel. The 'Big Wheel' will require...

Write a Financial Plan Written Assumptions and Three years of abbreviated monthly Pro Forma statements (Must have 12 months in each year!) Provide a written discussion expressing the knowledge gained...

How does voting differ from using market prices as a means of allocating resources in the economy?