Bramble Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $18,720. All sales are subject to a 4% sales tax. Compute sales taxes payable. Sales taxes payable $enter sales taxes payable in dollars Prepare a tabular summary to record sales taxes payable and sales. Include margin explanations for the changes in revenues and expenses.

Check explanation

Explanation:

The following can be deduced from the question:

Cash: $18720

Sales revenue: $17971.2

Sales tax payable: $748.8

From the question, we are informed that the register total for March 16 is $18,720 which is subject to a 4% sales tax. The amount that'll be paid as tax will then be:

= 4% × 18720

= 4/100 × 18720

= 0.04 × 18720

= $748.8

Sales revenue will then be:

= Cash - Sales tax payable

= $18720 - $748.8

= $17971.2

Explanation:

Sales price x (100%+sales tax rate) = sales price with sales tax

sales price x 1.04(100%+4%) = 18720

sales price = 18720/1.04

sales price = 18000

sales price with tax - sales price = sales tax payable

18720 - 18000 = 720

cash      18720

     Sales revenue.     18000

     Sales tax payable.    720

record sales and sales tax payable