A summary of the transactions of Kent,who is registered for sales tax at 20%,shows the following for the month of July 20X1: Outputs $90000(exclusive of sales tax),and   Inputs $75000(inclusive of sales tax) At the beginning of the month Kent owed $4275 to the government tax authority,and during the month Kent paid $4100 to the tax authority. What was the amount owing to the government tax authority at the end of the month?

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 7E
Question

A summary of the transactions of Kent,who is registered for sales tax at 20%,shows the following for the month of July 20X1:

Outputs $90000(exclusive of sales tax),and  

Inputs $75000(inclusive of sales tax)

At the beginning of the month Kent owed $4275 to the government tax authority,and during the month Kent paid $4100 to the tax authority.

What was the amount owing to the government tax authority at the end of the month?

 

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