Dailey Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $48150. If the sales tax rate is 7% what amount must be remitted to the state for February's sales taxes?

Question

Quizplus · Accepted Answer

To find the amount of sales tax, we need to first determine the portion of the total receipts that represents the sales tax.

Let x be the amount of sales before taxes.

Then, we can set up the equation:

x + 0.07x = 48150

Simplifying, we get:

1.07x = 48150

Dividing both sides by 1.07, we get:

x = 45000

This represents the amount of sales before taxes.

To find the amount of sales tax, we can multiply this by the tax rate:

0.07 * 45000 = 3150

Therefore, the amount that must be remitted to the state for February's sales taxes is $3150.

Dailey Company Does Not Ring Up Sales Taxes Separately on the Cash