Question

A retail store credited the sales revenue account for the sales price and the amount of sales tax on sales. if the sales tax rate is 5% and the balance in the sales revenue account amounted to $294,000, what is the amount of the sales taxes owed to the taxing agency? $14,000 $14,700 $280,000 $294,000

Answer 1

14,000

Step-by-step explanation:

Sales revenue x (100% + sales tax rate) = sales revenue with tax

sales revenue x 1.05 (100% + 5%) = 294000

sales revenue = 294000/1.05

sales revenue = 280,000

sales tax with tax - sales revenue = sales tax

294,000 - 280,000 = 14,000

Answer 2

We have to calculate the amount of the sales taxes owed to a taxing agency.
The tax rate is 5% ( 0.05 ) and the balance in the sales revenue account amounted to $294,000.
$294,000 * 0.05 = $14,700
Answer:
Amount of the sales taxes is B ) $14,700.