A business sells merchandise, $700, plus 6 percent sales tax, and the customer used a bank charge card. The discount charged by the bank is 4 percent of the total of sales plus sales tax. The amount recorded in the Sales Tax Payable Credit column is

Question

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The sales tax is 6% of $700, which is $42.00. This is the amount recorded in the Sales Tax Payable Credit column.

A Business Sells Merchandise, $700, Plus 6 Percent Sales Tax