Archie's had sales of $6,758. The state sales tax rate is 7%. All sales are cash. What amount will be debited to Cash?
$7,231.06
To determine the amount that will be debited to cash, we need to calculate the total sales including the sales tax. Here are the steps to follow:
1. Calculate the sales tax amount:
Sales Tax Amount = Sales * Sales Tax Rate
Given that the sales tax rate is 7%, we can calculate the sales tax as follows:
Sales Tax Amount = $6,758 * 7% = $6,758 * 0.07 = $472.06
2. Add the sales tax to the total sales to get the total amount Archie will receive in cash:
Total Cash Amount = Sales + Sales Tax Amount
Total Cash Amount = $6,758 + $472.06 = $7,230.06
Therefore, the total amount that will be debited to cash is $7,230.06.