Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fox Co. operates a retail store. All items are sold subject to a 5% state sales tax, which Fox collects and records as sales revenue.
Fox Co. operates a retail store. All items are sold subject to a 5% state sales tax, which Fox collects and records as sales revenue. Fox files quarterly sales tax returns when due, by the 20th day following the end of the sales quarter. However, in accordance with state requirements, Fox remits sales tax collected by the 20th day of the month following any month such collections exceed S500. Fox takes these payments as credits on the quarterly sales tax return. The sales taxes paid by Fox are charged against sales revenue. Following is a monthly summary appearing in Fox's first calendar quarter sales revenue account: Debit Credit January S $16,788 February 900 18,420 March 9,480 In its March 31 balance sheet, what amount should Fox report as sales taxes payable? $2,234 $1,228 O$2,128 $900
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started