A City Levies a 2% Sales Tax That Is Collected $1 / 20 / 11$

question 8

Multiple Choice

A City levies a 2% sales tax that is collected for them by the State.Sales tax must be remitted by the merchants to the State by the 20^th day of the month following the month in which the sale occurred.The State has a policy of remitting sales taxes to the City within 30 days of collection by the State.Cash received by the State related to sales tax is as follows: Amount received $1 / 20 / 11$ , applicable to December 2010 sales $\quad\$ 100$
Amount received $2 / 20 / 11$ , applicable to January 2011 sales $\quad\$ 30$
Amount received $3 / 20 / 11$ , applicable to February 2011 sales $\quad\$ 20$
Amount received during 2011 related to March-November 2011 sales $\quad\$ 380$
Amount received 1 / 20 / 12 for December 2011 sales $\quad\$ 110$
Amount received $2 / 20 / 12$ for January 2012 $\quad\$ 40$
Amount received $3 / 20 / 12$ for February 2012 $\quad\$ 10$ Assuming the City uses the same period to define "available" as the maximum period allowable for property taxes, what amount should it recognize as sales tax revenue in its government-wide financial statements for the fiscal year ended 12/31/11.

• A) $430.
• B) $530.
• C) $540.
• D) $550.