Engstrom Company makes a sale and collects a total of $378,which includes an 8% sales tax.What is the amount that will be credited to the Sales Revenue account?
A) $378
B) $350
C) $406
D) $348

Question

Quizplus · Accepted Answer

The amount that will be credited to the Sales Revenue account is the amount of the sale excluding the sales tax. To calculate this amount, we can divide the total amount collected by 1.08 (100% + 8% sales tax).$378 / 1.08 = $350Therefore, the amount that will be credited to the Sales Revenue account is $350.

Engstrom Company Makes a Sale and Collects a Total of $378,which