Wool Co.makes a sale and collects a total of $756,which includes an 8% sales tax.What is the amount that will be credited to the Sales Revenue account?
A)$756
B)$700
C)$812
D)$696

Name: Wool Co.makes a sale and collects a total of $756,which includes an 8% sales tax.What is the amount that will be credited to the Sales Revenue account? A)$756 B)$700 C)$812 D)$696
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sales tax = Sales revenue × Sales tax rate
Sales revenue = Sales tax ÷ Sales tax rate
= $756 ÷ 1.08 = $700

Wool CoMakes a Sale and Collects a Total of $756,which Includes