A retailer recorded the following in June: cash sales $2,500; credit sales, $11,000; sales returns and allowances, $1,150. Assuming the sales tax rate is 6 percent, the entry to record the sales tax payment includes a debit to Sales Tax Payable for

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Quizplus · Accepted Answer

The total sales are the sum of cash sales and credit sales, which is $2,500 + $11,000 = $13,500. Sales returns and allowances amount to $1,150, so the net sales are $13,500 - $1,150 = $12,350. The sales tax is calculated on this net amount at a rate of 6%, so the sales tax payable is $12,350 * 0.06 = $741.

A Retailer Recorded the Following in June: Cash Sales $2,500;