Hospitality Management

 

In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales.

1. Cavanaugh Pizza rings up sales and sales taxes separately on its cash register. On April 10, the register totals are sales $25,000 and sales taxes $1,500.

2. Corelli Pasta does not segregate sales and sales taxes. Its register total for April 15 is $13,780, which includes a 6% sales tax.

 

Solution:

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