A retail store increased the Sales Revenue for the sales price and the amount of sales tax on sales.If the sales tax rate is 5% and the balance in total receipts amounted to $294000 what is the amount of the sales taxes owed to the taxing agency?

Question

Quizplus · Accepted Answer

To find the sales tax owed, divide the total receipts by 1.05 to find the sales revenue without tax, then subtract this from the total receipts. $294,000 / 1.05 = $280,000 (sales revenue without tax). The sales tax is $294,000 - $280,000 = $14,000.

A Retail Store Increased the Sales Revenue for the Sales