Answer:
$535.
Explanation:
The total price, inclusive of sales tax, charged by the company is $3,210 (3,000 * 1.07). When the customer return $500 of goods, the company has to repay $500 Plus Sales Tax Charged on it. So, the cash refund is $535 (500 * 1.07) or (500/3,000) * (3,210).
Answer:
The amount of the cash refund is $535.
Explanation:
A sales tax can be described as a tax on consumption of goods and services that government imposes on when those goods and services are sold.
Usually, the sales tax is charged and collected at the point of sale by the seller who remits it to the government.
When a good is returned by a buyer to the seller, it implies the good is no longer sold. Therefore, no tax is payable on the good. The seller will then have to refund the buyer the amount paid on the good together with the sales already paid by the buyer.
Form the question, the sales tax already paid on the good returned can be calculated as follows:
Sales tax refund = $500 × 7% = $35
Therefore, the amount to refund to the customer will be:
Cash refund = $500 + $35 = $535.
Therefore, the amount of the cash refund is $535.
