Problem: 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)