Question
Donna is a retail store that operates in a locale where the state sales tax is 5% and the county sales tax is 3%. Both
Donna is a retail store that operates in a locale where the state sales tax is 5% and the county sales tax is 3%. Both the state and the county require Donna to remit sales tax collections in the month following the sale. The state allows Donna to keep 2% of the sales tax it collects and the county allows Donna to keep 1% of the sales tax it collects. Donna records the sales tax that it collects in its sales revenue account. The amount recorded in Donnas sales revenue account during March was $504,360. Donna prepares monthly financial statements.
For the month of March, what was Donnas sales revenues amount?
As of March 31, what is the amount of Donnas sales taxes payable to the state (if necessary, round to the nearest dollar)?
As of March 31, what is the amount of Donnas sales taxes payable to the county (if necessary, round to the nearest dollar)?
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