91.0k views
5 votes
Exceptional Electronics began operations on September 1, 20X1. The firm sells merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. The terms for all sales on credit are net 30. Analyze the transactions and answer the following MCQ: Options: a) $10,700 b) $9,300 c) $7,900 d) $12,500

User Onofrio
by
7.5k points

1 Answer

2 votes

Final answer:

Cannot determine the correct multiple-choice answer without specific transaction data, but an explanation of how to calculate the total sales amount inclusive of a 7% sales tax was provided using an example.

Step-by-step explanation:

The original question seems to involve calculating the total amount of sales generated by Exceptional Electronics, inclusive of a 7 percent sales tax. To clarify, there are no specific transaction amounts provided in the student's question to directly answer the multiple-choice options presented. Therefore, we cannot accurately select an answer from options a) $10,700 b) $9,300 c) $7,900 d) $12,500 based solely on the information given. To assist with problems like this, I can provide an example of how to calculate such a total.

For instance, let's take an item sold for a base price of $100. If a 7 percent sales tax applies, you would calculate the total cost as follows:

  • Convert the sales tax to a decimal: 7 percent = 0.07.
  • Multiply the base price by the sales tax rate: $100 × 0.07 = $7.
  • Add the sales tax to the base price to get the total: $100 + $7 = $107.

Returning to Jerod's restaurant bill as a similar example from an exercise, if the food total was $47.50 and the sales tax was 6 percent, one would:

  • Convert the 6 percent sales tax to a decimal, which is 0.06.
  • Multiply the base amount by the sales tax: $47.50 × 0.06 = $2.85.
  • Add the sales tax to the bill, resulting in a total of $47.50 + $2.85 = $50.35 before tip.
User Andrea Angeli
by
7.7k points