Greenspan Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $11,880. All sales are subject to a 8% sales tax. Compute sales taxes payable. Sales taxes payable

Based on the given information the sales taxes payable is $880.

Using this formula

Sales tax payable =Register total sales-[Register total sales/(1+Sales tax)]

Where:

Register total sales=$11,880

Sales tax=8%

Let plug in the formula

Sales tax payable =$11,880-[$11,880/(1+0.08)]

Sales tax payable=$11,880-[$11,880/(1+.08)]

Sales tax payable=$11,880-($11,880/1.08)

Sales tax payable=$11,880-$11,000

Sales tax payable=$880

Inconclusion the sales taxes payable is $880.

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$880

Explanation:

Sales excluding sales tax 

11880/(1+0.08)

11880/1.08

= $11,000

Sales tax payable =

Total sales including sales tax - Sales excluding sales tax

= $11,880 - $11,000

= $880

Therefore, sales tax payable is $880

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