Erin is registered for sales tax. During May, she sold goods with a list price of $600, excluding sales tax, to Kyle on credit. As Kyle was buying a large quantity of goods, Erin deducted trade discount of 5% of the normal list price. If sales tax is charged at 15%, what will be the gross value of the sales invoice prepared by Erin?
Erin is registered for sales tax. During May, she sold goods with a list price of $600, excluding sales tax, to Kyle on credit. As Kyle was buying a large quantity of goods, Erin deducted trade discount of 5% of the normal list price. If sales tax is charged at 15%, what will be the gross value of the sales invoice prepared by Erin?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Erin is registered for sales tax. During May, she sold goods with a list price of $600,
excluding sales tax, to Kyle on credit. As Kyle was buying a large quantity of goods, Erin
deducted trade discount of 5% of the normal list price.
If sales tax is charged at 15%, what will be the gross value of the sales invoice prepared by
Erin?
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