Essay
The Candy Junction operates two candy stores. Sales at the two stores in 2014 were $320,000 and $201,000; these amounts do not include sales tax. Both stores are in a state with a 5% sales tax rate.
Required:
a) What is the total amount of sales tax that the stores collected in 2014?
b) What kind of transaction is the collection of the sales tax? (asset source, asset use, asset exchange, claims exchange).
c) At the end of the year, the company remitted the sales tax to the state. What kind of transaction is the remission (payment) of the sales tax?
Correct Answer:
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a) $26,050 ($320,000...View Answer
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Correct Answer:
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