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Oakley Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $32,100. If the sales tax rate is 7%, what amount must be remitted to the state for February's sales taxes?

User Drew Sears
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1 Answer

5 votes

Answer: $2100

Step-by-step explanation:

From the question, we are informed that Oakley Company does not ring up sales taxes separately on the cash register and that the total receipts for February amounted to $32,100 and the sales tax rate is 7%.

The amount that must be remitted to the state for February's sales taxes will be:

= $32,100/(1+7%) × 7%

= $32100/(1 + 0.07) × 0.07

= $32100/1.07 × 0.07

= $2100

User Catomatic
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