Posner Co. is a retail store operating in a state with a 7% retail sales tax. The retailer may keep 2% of the sales tax collected. Posner Co. records the sales tax in the Sales Revenue account. The amount recorded in the Sales Revenue account during May was $251,450. The amount of sales taxes payable (to the nearest dollar) to the state for the month of May is a. $12,573. b. $16,121. S20,762. d. C. $17,250
Posner Co. is a retail store operating in a state with a 7% retail sales tax. The retailer may keep 2% of the sales tax collected. Posner Co. records the sales tax in the Sales Revenue account. The amount recorded in the Sales Revenue account during May was $251,450. The amount of sales taxes payable (to the nearest dollar) to the state for the month of May is a. $12,573. b. $16,121. S20,762. d. C. $17,250
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 6RE: Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of...
Related questions
Question
Transcribed Image Text:Posner Co. is a retail store operating in a state with a 7% retail sales tax. The retailer
may keep 2% of the sales tax collected. Posner Co. records the sales tax in the Sales
Revenue account. The amount recorded in the Sales Revenue account during May
was $251,450.
The amount of sales taxes payable (to the nearest dollar) to the state for the
month of May is
S12,573.
b. S16.121.
S20,762,
d.
a.
C.
S17,250
Expert Solution
Step 1
Sales tax is a form of taxation imposed on the sale of goods and services. The tax is imposed by the government of any country (or state), and is collected at the point of sale.
The sales tax is deducted from net sales revenue before making an entry in the Sales Revenue account
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College