Question

Greenspan Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $10,920. All sales are subject to a 4% sales tax.

Answer 1

$420

Step-by-step explanation:

Missing question "Compute sales taxes payable"

Sales excluding sales tax = $10,920/(1+0.04)

Sales excluding sales tax = $10,920/1.04

Sales excluding sales tax = $10,500

Sales tax payable = Total sales including sales tax - Sales excluding sales tax

Sales tax payable = $10,920 - $10,500

Sales tax payable = $420