Koppernaes Company has total proceeds (before segregation of sales taxes) from sales of $9540. If the sales tax is 6% the amount to be credited to the account Sales Revenue is:
A) $9540.
B) $8968.
C) $10112.
D) $9000.

Question

Quizplus · Accepted Answer

To find the amount credited to Sales Revenue, divide the total proceeds by 1 plus the sales tax rate: $9540 / 1.06 = $9000.

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