Purchase Solution

Lancaster Lumber Supply sold $19,200 worth of treated wood t

Not what you're looking for?

Ask Custom Question

Lancaster Lumber Supply sold $19,200 worth of treated wood to Singletary Home Builders on account on March 25 of this year. The sales tax associated with the purchase was $1,344 and Lancaster is required to remit sales taxes to the State Tax Commission office within twenty days of the end of the month (i.e. by April 20th.)

How much is Lancaster required to submit to the State Tax Commission on this individual sale by April 20th?
Answer
A. 1,083.87 (sales tax applicable to the period from April 01 to April 20)
B. None of the other answers
C. None because the client has not yet paid Lancaster.
D. $1,344
E. $260.13 (sales tax applicable to the remaining 6 days in March)

Purchase this Solution

Solution Summary

Lancaster Lumber Supply sold $19,200 worth of treated wood to Singletary Home Builders on account on March 25 of this year. The sales tax associated with the purchase was $1,344 and Lancaster is required to remit sales taxes to the State Tax Commission office within twenty days of the end of the month (i.e. by April 20th.)

How much is Lancaster required to submit to the State Tax Commission on this individual sale by April 20th?
Answer
A. 1,083.87 (sales tax applicable to the period from April 01 to April 20)
B. None of the other answers
C. None because the client has not yet paid Lancaster.
D. $1,344
E. $260.13 (sales tax applicable to the remaining 6 days in March)

Solution Preview

D. $1,344

-- It doesn't matter that payment hasn't been made, the sale was realized for the lumber supply company. The ...

Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.