GAS" Company does not segregate sales and sales taxes at the time of sale. The sales register total for the month of March was $25000. Assume that all sales are subject to a 13% sales tax. Required: Based on the above-given information, answer the following questions: What amount must be presented as a sales tax expense on the Income statement for the month of March? What is the amount that must be presented as sales revenue on the Income statement for the month of March?

GAS" Company does not segregate sales and sales taxes at the time of sale. The sales register total for the month of March was $25000. Assume that all sales are subject to a 13% sales tax. Required: Based on the above-given information, answer the following questions: What amount must be presented as a sales tax expense on the Income statement for the month of March? What is the amount that must be presented as sales revenue on the Income statement for the month of March?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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