Lasalle Co. sold merchandise on account in the amount of $550. The sales tax rate is 6.5%. What is the amount credited to the Sales Tax Payable account.

Name: Lasalle Co. sold merchandise on account in the amount of $550. The sales tax rate is 6.5%. What is the amount credited to the Sales Tax Payable account.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

To calculate the sales tax payable, first, we need to multiply the sales amount by the sales tax rate:
Sales tax payable = $550 x 6.5% = $35.75
Therefore, the correct answer is B, $35.75.