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During December, Far West Services makes a $2,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%. Required: Record sales and sales tax payable.
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During December, Far West Services makes a $2,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%.

Required:
Record sales and sales tax payable.

User Alex MacArthur
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1 Answer

23 votes
23 votes

Answer:

Total sales tax payable:170, sales :2000

Step-by-step explanation:

Sale price x sales tax rate = sales tax payable

2000 x .085 (6%+2.5%) = 170

it doesn’t say so I’m assuming that the 2,000 credit sale does NOT include the sales tax due.

User Zicsus
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