C) A retailer buys an article from the wholesaler at RO 240 and the wholesaler charges a sales tax at the rate prescribed rate of 8%. The retailer fixes the price at RO 300 and charges sales tax at the same rate. Apply VAT system of sales tax calculation to answer the following. What is the price that a consumer has to pay to buy the article? Find the input tax and output tax for the retailer. How much VAT does the retailer pay to the government?

C) A retailer buys an article from the wholesaler at RO 240 and the wholesaler charges a sales tax at the rate prescribed rate of 8%. The retailer fixes the price at RO 300 and charges sales tax at the same rate. Apply VAT system of sales tax calculation to answer the following. What is the price that a consumer has to pay to buy the article? Find the input tax and output tax for the retailer. How much VAT does the retailer pay to the government?

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 1CP

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