Question
I recently received a payment from a customer for a past due bill. He paid $3200 which did not include the sales tax of 6%.
I recently received a payment from a customer for a past due bill. He paid $3200 which did not include the sales tax of 6%. I called him up to let him know his mistake, but he informed me that when we had spoke originally, that my total bill would be $3200, which included sales tax. Knowing that it is unlikely that I will get any additional money from this customer, I am going to pay the sales tax out of what I have collected. What I need to know is the Taxable Amount that I need to report, so that when I add on the Sales Tax, the total bill would be $3200.
One way to look at this would be:
Taxable Amount + 6% Sales Tax on Taxable Amount = 3200
What is the Taxable Amount?
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