Morgan company does not ring up sales taxes separately on the cash register. total receipts for february amounted to $25,440. if the sales tax rate is 6%, what amount must be remitted to the state for february's sales taxes?

Question

Business

Shyla Hammond

3 February, 06:18

Morgan company does not ring up sales taxes separately on the cash register. total receipts for february amounted to $25,440. if the sales tax rate is 6%, what amount must be remitted to the state for february's sales taxes?

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Nolan Baxter · Answer 1

Answer: The correct answer is $1,440.

Explanation: In order to solve this problem you need to divide the total amount of receipts by 1.06. The number 1.06 represents the cost of the products plus 6% interest.

When dividing the total amount $25,440 by 1.06 the answer is $24,000, which represents the amount of the sales. The difference between $25,440 and $24,000 is $1,440, which is the amount of the sales tax. You can then double check your work to make sure that it is correct by multiplying the total sales of $24,000 by 6% to make sure that you have the correct total. $24,000 x. 06 = $1,440.