Davis Company's sales for March 19 were $31,900. Davis is required to collect a 7% state sales tax. The total cash received from customers was:

Question

Quizplus · Accepted Answer

To find the total cash received from customers, we need to add the sales and the sales tax. The sales tax is calculated by multiplying the sales amount by the tax rate:

Sales tax = $31,900 x 0.07 = $2,233

Total cash received = Sales + Sales tax 
Total cash received = $31,900 + $2,233 
Total cash received = $34,133

Therefore, the best choice is D, with a total cash received of $34,133.

Davis Company's Sales for March 19 Were $31,900