ACCA F3 Sales Tax
Sales (including sales tax) amounted to $23,500, and purchases (excluding sales tax) amounted to $18,000. What is the balance on the sales tax account, assuming all items are subject to sales tax at 17.5%?
Suggested solutions:
| Amount | Sales tax | Total | |
| $ | $ | $ | |
| Sales | 20,000 | 3,500 | 23,500 |
| Purchases | 18,000 | 3,150 | 21,150 |
| Answer | 350 | Credit Balance |