Sales tax question — OpenTuition Forums

JJustyna6y ago

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) $ 64,000 Sales 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?

John MoffatTutor6y ago#1

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/

JJustyna6y ago#2

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 :-)

John MoffatTutor6y ago#3

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.)

JJustyna6y ago#4

Thank you so much Mr John. Much appreciate your help. Best regards, Justyna

John MoffatTutor6y ago#5

You are welcome :-)

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