General Lighting

During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%.
-Refer to General Lighting. Sales taxes are required to be paid to the state taxing authority at the end of the quarter. What is the amount of the current liability related to this transaction?

Question

General Lighting
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During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%.
-Refer to General Lighting. Sales taxes are required to be paid to the state taxing authority at the end of the quarter. What is the amount of the current liability related to this transaction?

Quizplus · Accepted Answer

The sales tax liability is calculated as 4,000 batteries x $150 x 6% = $36,000. This is the amount that needs to be paid to the state taxing authority, making it the current liability.

General Lighting ​

General Lighting