Question

Tamarisk, Inc. does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $41160. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes? $2058 $98 It cannot be determined. $1960

Answer 1

$1,960

Step-by-step explanation:

To find out the sales taxes to be remitted with need to use this formula:

S = Total Sales / 1 + Sales Tax

where S = true total sales (sales - sales tax)

Plugging the amounts into the formula we obtain:

S = $41,1160 / 1 + 0.05

S = $39,200

Now, we can find the sales tax to be remitted by simply multiplying the true sales revenue with the tax rate:

Sales tax to be remitted = $39,200 x 0.05

= $ 1,960