Elegant Electronics sells a cellular phone on September 2 for $438. On September 6, Elegant sells another cellular phone for $350. Sales tax is computed at 8.8% of the total sale. What is the sales tax remitted rounded to the nearest penny, two decimals?

Elegant Electronics sells a cellular phone on September 2 for $438. On September 6, Elegant sells another cellular phone for $350. Sales tax is computed at 8.8% of the total sale. What is the sales tax remitted rounded to the nearest penny, two decimals?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 6RE: Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of...

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Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

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Elegant Electronics sells a cellular phone on September 2 for $438. On September 6, Elegant sells another cellular phone for $350. Sales tax is computed at 8.8% of the total sale.

What is the sales tax remitted rounded to the nearest penny, two decimals?

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