A sale of $600 on account subject to a sales tax of 5% would increase account receivable by $570.

Name: A sale of $600 on account subject to a sales tax of 5% would increase account receivable by $570.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If a sale of $600 on account is subject to a sales tax of 5%, the total amount due would be $630 ($600 + 5% of $600 = $600 + $30 = $630). Therefore, the account receivable would increase by $630, not $570.

A Sale of $600 on Account Subject to a Sales