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Hi everyone,
Can anyone help me with this question:
The following information relates to Eva Co’s sales tax for the month if March 20X3:
Sales (including sales tax) $ 109,250
Purchases (net of sales tax) $ 64,000Sales tax is charged at a flat rate of 15%. Eva Co’s sales tax account showed an opening credit balance of $4,540 at the beginning of the months and a closing debit balance of $2,720 at the end of the month.
What was the total sales tax paid to regulatory authorities during the month of March 20X3?
Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers 🙂
See my previous answer to the same question:
https://opentuition.com/topic/sales-tax-51/Hi John,
Question I am looking for an answer to is from BPP revision kit and I do have BPP’s answer too. However, I do not agree with that answer. For that reason I am asking the question to see if I am wrong and the BPP answer is correct? Clarification purposes. Thanks 🙂
The BPP answer is correct at $11,910, and I explain the workings in the link I gave above.
(In the link I made a silly arithmetic mistake in my first reply, but corrected it in the next reply.)
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