A restaurant business provides the following information to you as the CPA:

• Total Bank Deposits for year 2018 = $612,778
• Total Cash Sales from the Cash Register (Point-of-Sale system) = $137,139
• Total Credit Card Sales from the Cash Register (Point-of-Sale system) = $662,861
• Total Sales taxes charged to customers = $72,778 (MN sales tax rate 10%)
• Cash tips received from customers = $50,083
• Credit Card tips received = $59,000

QUESTIONS:

1. What would be the Total Gross Receipts to be reported to MN Department of Revenue?
2. If the business does not provide the taxable sales, how would you determine this amount?
3. What do you think is the difference between the bank deposits and the Sales from the Cash Register? Explain the possible causes.