Layton Company Does Not Ring Up Sales Taxes Separately on the Cash

question 29

Multiple Choice

Layton Company does not ring up sales taxes separately on the cash register.Total receipts for October amounted to $29,400.If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes?

• A)$1,400
• B)$1,470
• C)$70
• D)It cannot be determined.

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Definitions:

Backward Integration

A business strategy where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain.

Forward Integration

A business strategy where a company extends its operations by moving towards the direct control of its distribution or supply chain further down the production process.

Retailer

A business or person that sells goods to the consumer, as opposed to a wholesaler or supplier.

Retailer-sponsored Cooperative

A group of independent retailers who collectively purchase goods, share marketing efforts, and distribution channels to compete with larger chains effectively.