Carlyle Company sold goods for $425 plus a 7 percent sales tax to a customer using a bank credit card. The bank deducts a 3 percent discount. Carlyle Company debits Cash for

Question

Quizplus · Accepted Answer

Firstly, we need to calculate the amount of sales tax: 
$425 x 7% = $29.75

Then, we can calculate the total sale amount: 
$425 + $29.75 = $454.75

Since the bank deducts a 3% discount, we can calculate the discount amount: 
$454.75 x 3% = $13.64

Finally, we can calculate the amount Carlyle Company receives after the discount is deducted: 
$454.75 - $13.64 = $441.11

Therefore, Carlyle Company debits Cash for $441.11.

Carlyle Company Sold Goods for $425 Plus a 7 Percent