Exercise $9-3$A $($Static$)$ Recording sales tax LO $92$

Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is $8$ percent. Vail engaged in the following transactions during the year. Sales tax of $8$ percent is collected on all sales.

Book sales, not including sales tax, for the year amounted to $$250,000$ cash.

Cash sales of miscellaneous items for the year were $$85,000,$ not including tax.

Cost of goods sold was $$190,000$ for the year.

Paid $$117,000$ in operating expenses for the year.

Paid the sales tax collected to the state agency.

Required

a$.$ What is the total amount of sales tax Vail Book Mart collected and paid for the year?

b$.$ What is the Vail Book Mart's net income for the year?

a$.$ Sales tax collected

b$.$ Net income