Question
Use the following information to determine total taxable sales. The following items were sold: Taxable widgets of $105,000 Non-taxable widgets of $30,000 Shipping charges of
Use the following information to determine total taxable sales.
The following items were sold:
- Taxable widgets of $105,000
- Non-taxable widgets of $30,000
- Shipping charges of $5,000
- Handling charges of $8,000
- Installation/labor charges of $43,000
- Sales to purchasers in Texas $18,000
- Sales to purchasers with valid resale certificates $22,000
Additional Information:
- Shipping charges are separately stated at cost on the invoices.
- Handling charges are subject to sales tax.
- You have looked at the industry guides and determined that installation and labor charges are non-taxable
Calculate the total taxable sales to be reported on the sales tax return:
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Financial accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
IFRS Edition
9781119153726, 978-1118285909
