Question

A sales slip shows that $1,500 in merchandise has been sold and the sales tax rate is 4%. Generate the cash receipt's data.

Answer 1

Answer:

Cash receipt:

Particulars                      Amount

................................................................

Sales                              = $1,500

Sales tax @4.00 %        = $60

................................................................

Total                              =  $1,560

.................................................................

Explanation:

Data :

Merchandise cost in the sales slip = $1,500

sales tax rate for the merchandise = 4%

Now,

the cash receipt data will include the merchandise cost, the amount of tax and the total amount after including the tax

Thus,

The amount of tax on the merchandise = sales tax rate × Merchandise cost

or

The amount of tax on the merchandise = 0.04 × $1,500 = $60

Hence,

the total cost = cost of merchandise + the sales tax = $1,500 + $60 = $1,560

Cash receipt:

Particulars                      Amount

................................................................

Sales                              = $1,500

Sales tax @4.00 %        = $60

................................................................

Total                              =  $1,560

.................................................................