Tyler Floor Company sold flooring for $1,275 cash. The sales tax for the customer using a bank credit card was 6%. Tyler Floor Company will debit Cash for what amount?

Question

Quizplus · Accepted Answer

The amount of sales tax is 6% of $1,275 which is: 
(6/100) x $1,275 = $76.50 
Therefore, the total amount paid by the customer is: 
$1,275 + $76.50 = $1,351.50 
Since the customer paid in cash, Tyler Floor Company will debit its Cash account for $1,351.50.

Tyler Floor Company Sold Flooring for $1,275 Cash