Question

Greenspan supply does not segregate sales and sales taxes at the time of sales. The register total for March 16 is $14, 580. All sales are subject to a 8/ sales tax

Compute sales taxes payable

Answer 1

Answer--- sales taxes payable= $1,080

As per the given information in the question. Sales tax and sales is not separated at the time of sale. The amount of $14580 includes both sales and sales tax .

What we need to do is reverse calculate the amount of sales tax. Since total amount is sales plus sales tax and rate of sales tax is 8%. Total amount would be 108% in total. Sales tax and sales is calculated below.

Calculations
Total amount	$ 14,580.00
Sales tax (14580/108 x 8)	$    1,080.00
Sales revenue (14580/108 x 100)	$ 13,500.00

We can also verify the above calculation by multiplying sales with sales tax rate to get sales tax amount .

Verification
Sales revenue	$ 13,500.00
Sales tax @8% (13500 x 8/100)	$    1,080.00
Total (13500+1080)	$ 14,580.00