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Sales tax

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Sales tax

  • This topic has 3 replies, 2 voices, and was last updated 11 years ago by Shanda.
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  • November 9, 2014 at 2:01 am #208509
    Shanda
    Member
    • Topics: 46
    • Replies: 44
    • ☆☆

    At 1 December 2012, Laurel owed sales tax to the state of $23,778.
    During the month of December she had the following transactions:
    -sales of $800,000 exclusive of 17.5 % sales tax
    -purchase of $590,790 inclusive of 17.5% sales tax.

    During December she has paid no tax to the state.
    How much did Laurel owe to the state for sales tax at the end of December?
    Can I see the method of calculation please?

    November 11, 2014 at 12:36 am #208940
    Shanda
    Member
    • Topics: 46
    • Replies: 44
    • ☆☆

    for input sales tax why must you divide by 117.5?

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