Barron, Inc. sold goods for $888,500 on account. The company operates in a state that imposes a 12% sales tax. What is the amount of the sales tax payable to the state? A. $5 B. $26,655 C. $106, 620 D. $213,240
Barron, Inc. sold goods for $888,500 on account. The company operates in a state that imposes a 12% sales tax. What is the amount of the sales tax payable to the state? A. $5 B. $26,655 C. $106, 620 D. $213,240
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 7MCQ
Related questions
Question
![Barron, Inc. sold goods for $888, 500 on account. The company operates in a state that imposes a 12% sales tax. What is the amount of the sales tax payable to the state? A. $53,310
B. $26,655 C. $106, 620 D. $213, 240](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7fd574dc-13b6-465a-8f4d-a9d3367cc949%2F40d2e52d-c599-4530-acc9-59766ac27cff%2Fkkwlc55_processed.png&w=3840&q=75)
Transcribed Image Text:Barron, Inc. sold goods for $888, 500 on account. The company operates in a state that imposes a 12% sales tax. What is the amount of the sales tax payable to the state? A. $53,310
B. $26,655 C. $106, 620 D. $213, 240
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage