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On 1/1/2020, the merchant Ahmed imported goods at a cost of 880,000 dinars, and the customs duties due on the imported goods amounted to 224,000 dinars. Note that the percentage of sales tax on this type of imports is 16%. Ahmed's sales are as follows: In the month of January: 450,000 dinars In the month of February: 400,000 dinars In the month of March: Zero (Due to the lockdown/COVID-19) In the month of April: 280,000 dinars In the month of May: 160,000 dinars Instructions: Answer the following questions The amount of sales tax paid by Ahmed when the goods are imported equais: B A. 140,800 B. 176,640 C. 135,540 D. None of the above 2. Assuming that Ahmed dose not paid any amount to the tax department, the outstanding balance of the sales tax account at Ahmed's books at the end of February equals: A A. 40,640 B. 104,640 C. 176,640 D. None of the above

On 1/1/2020, the merchant Ahmed imported goods at a cost of 880,000 dinars, and the customs duties due on the imported goods amounted to 224,000 dinars. Note that the percentage of sales tax on this type of imports is 16%. Ahmed's sales are as follows: In the month of January: 450,000 dinars In the month of February: 400,000 dinars In the month of March: Zero (Due to the lockdown/COVID-19) In the month of April: 280,000 dinars In the month of May: 160,000 dinars Instructions: Answer the following questions The amount of sales tax paid by Ahmed when the goods are imported equais: B A. 140,800 B. 176,640 C. 135,540 D. None of the above 2. Assuming that Ahmed dose not paid any amount to the tax department, the outstanding balance of the sales tax account at Ahmed's books at the end of February equals: A A. 40,640 B. 104,640 C. 176,640 D. None of the above

FINANCIAL ACCOUNTING
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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Je On 1/1/2020, the merchant Ahmed imported goods at a cost of 880,000 dinars, and the customs duties due on the imported goods amounted to 224,000 dinars. Note that the percentage of sales tax on this type of imports is 16%. Ahmed's sales are as follows: In the month of January: 450,000 dinars In the month of February: 400,000 dinars In the month of March: Zero (Due to the lockdown/ COVID-19) In the month of April: 280,000 dinars In the month of May: 160,000 dinars Instructions: Answer the following questions The amount of sales tax paid by Ahmed when the goods are imported equals: B A. 140,800 B. 176,640 C. 135,540 D. None of the above 2. Assuming that Ahmed dose not paid any amount to the tax department, the outstanding balance of the sales tax account at Ahmed's books at the end of February equals: A A. 40,640 B. 104,640 C. 176,640 D. None of the above
Transcribed Image Text:Je On 1/1/2020, the merchant Ahmed imported goods at a cost of 880,000 dinars, and the customs duties due on the imported goods amounted to 224,000 dinars. Note that the percentage of sales tax on this type of imports is 16%. Ahmed's sales are as follows: In the month of January: 450,000 dinars In the month of February: 400,000 dinars In the month of March: Zero (Due to the lockdown/ COVID-19) In the month of April: 280,000 dinars In the month of May: 160,000 dinars Instructions: Answer the following questions The amount of sales tax paid by Ahmed when the goods are imported equals: B A. 140,800 B. 176,640 C. 135,540 D. None of the above 2. Assuming that Ahmed dose not paid any amount to the tax department, the outstanding balance of the sales tax account at Ahmed's books at the end of February equals: A A. 40,640 B. 104,640 C. 176,640 D. None of the above
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