Crawford Company has total proceeds (before segregation of sales taxes) from sales of $7,950. If the sales tax is 6%, the amount to be credited to Sales Revenue is:

Name: Crawford Company has total proceeds (before segregation of sales taxes) from sales of $7,950. If the sales tax is 6%, the amount to be credited to Sales Revenue is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To find the amount credited to Sales Revenue, divide the total proceeds by 1 plus the sales tax rate: $7,950 / 1.06 = $7,500.

Crawford Company Has Total Proceeds (Before Segregation of Sales Taxes)