Question

Coghlan Auto Supply does not segregate sales and sales taxes at the time of sale. The cash register total for March 16 is $16,380. All sales are subject to a 5% sales tax. Compute sales taxes payable. Sales taxes payable $enter sales taxes payable in dollars

Answer 1

Answer:

$780

Explanation:

The computation of the sales tax payable is shown below:

Sales tax payable = Total sales ÷ (100 + sales tax rate) × sales tax rate

where,

Total sales is $16,380

And, the sales tax rate is 5%

Now placing these values to the above formula

So, the sales tax payable is

= $16,380 ÷ (100 + 5%) × 5%

= $780

We simply applied the above formula so that the sales tax payable could come