W is registered for sales tax. The managing director has asked four staff in the accounts department why the output tax for the last quarter does not equal 20% of sales (20% is the rate of tax).

Which one of the following four replies she received was NOT correct?

Sales (including sales tax) amounted to $27,612.50, 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%?

The following information relates to Eva Co's sales tax for the month of March 20X3:

Sales tax is charged at a flat rate of 15%. Eva Co's sales tax account showed an opening credit balance of $4,540 at the beginning of the month and a closing debit balance of $2,720 at the end of the month.

What was the total sales tax paid to regulatory authorities during the month of March 20X3?

$_______

Information relating to Lauren Co's transactions for the month of May 20X4 is shown below:

Sales tax is charged at a flat rate of 20%. Lauren Co's sales tax account had a zero balance at the
beginning of the month and at the end of the month.

* Lauren Co's sales for the month of $140,000 included $20,000 of sales exempt from sales tax.

What was the total sales tax paid to regulatory authorities at the end of May 20X4 (to the nearest $)?

A business commenced with capital in cash of $1,000. Inventory costing $800 plus sales tax is purchased on credit, and half is sold for $1,000 plus sales tax, the customer paying in cash at once. The sales tax rate is 20%.

What would the accounting equation after these transactions show?

Which of the following correctly describe the entry in the sales account for a sale for a sales tax registered trader?

Alana is not registered for sales tax purposes. She has recently received an invoice for goods for resale which cost $500 before sales tax, which is levied at 15%. The total value was therefore $575.

What is the correct entry to be made in Alana's general ledger in respect of the invoice?

Trade receivables and payables in the financial statements of a sales tax registered trader will appear as described by which of the following?