Calculate the missing information for the purchase.
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter14: Adjustments And The Work Sheet For A Merchandising Business
Section: Chapter Questions
Problem 1MC
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Question
Calculate the missing information for the purchase.
Item | Selling Price |
Sales Tax Rate |
Sales Tax (in $) |
Excise Tax Rate |
Excise Tax |
Total Purchase Price (in $) |
---|---|---|---|---|---|---|
Sofa | $850.00 | 5 | $ | 0 | 0 | $ |
Expert Solution
Step 1 Explanation:
To calculate Total purchase price we have to increase selling price by adding sales tax (if applicable) plus excise tax (if applicable).
Sales tax rate is applied on selling price to calculate sales tax amount.
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