Question

Using the following information from the books and records of Grande Corporation, determine Grande’s total sales that are subject to State C’s sales tax. Grande operates a retail general store.

Sales to C consumers, general merchandise	$1,100,000
Sales to C consumers, crutches and other medical supplies	245,000
Sales to consumers in State D, via mail order	80,000
Purchases from suppliers	55,000

Answer 1

Determination of the total sales of Corporation G subject to State C’s sales tax:

Type	Sales
Sales to C consumers, general merchandise	$1,100,000
Sales to C consumers, crutches and other medical supplies	$245,000
Sales to consumers in State D, via mail order	$80,000
Purchases from Suppliers	$55,000

Sales of targeted items, such as medical supplies are except from sales tax, as are sales for resale i.e. purchases from suppliers.

Sales to consumers in State D via mail order are subject to use tax in State D.

Total sales of Corporation G that are subject to State C’s sales tax are $1,100,000.