Question

Venus Company sold​ goods, with a selling price of $ 14,221​, for cash. The state sales tax rate is 8​%. What amount is credited to the Sales Revenue​ account? (Round calculations to the nearest​ dollar.)

Answer 1

$ 14,221

Step-by-step explanation:

Data provided in the question :

Selling price of the good = $ 14,221

State sales tax rate = 8 %

now,

the sales tax on the goods sold = 8% of $ 14,221

or

the sales tax on the goods sold = 0.08 × $ 14,221 = $ 1,137.68

therefore,

The total cash received = Selling price + sales tax on the

or

The total cash received = $ 14,221 + $ 1,137.68 = $ 15,358.68

now the received tax goes to the state i.e $ 1,137.68

Therefore,

the net sales revenue credited to the account

= total cash received - sales tax on the goods sold

or

the net sales revenue credited to the account = $ 15,358.68 - $ 1,137.68

or

the net sales revenue credited to the account = $ 14,221