What the amount that should be carved out

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Problem 1: A pet store is subject to a 5% sales tax. The store does not separately account for the tax at the time of the sale - Instead the gross amount of the sales revenue and sales tax are initially captured in the sales revenue account... If the gross amount is $32,000 then the amount that should be carved out and recorded as sales taxes payable is which of the following:

a. $30,476
b. $1,600
c. $1,524
d. $30,400

Reference no: EM133002699

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