Question

Padres Co sells goods subject to a state sales tax of 8%. State law requires that the amount of sales tax collected during the month be remitted by the end of the following month. At the time of a sale, Padres Co credits the sales account for both the amount of sales revenue and sales tax. Sales tax, when paid, is then debited to the sales account. Accrual for sales tax payable is made only at December 31. Sales tax collected during April was $378,400; sales revenue for May was $4,240,000; the total amount credited to the sales account during June was $5,302,800. Total sales tax paid to the state during the months of April, May, and June was $1,107,200. Total sales revenue during January through March was $12,040,000

1) Determine the following amounts:
a) sales tax collected in June. 392,800
b) sales revenue reported for March. 4870,000
c) credits to the Sales account during April. 5108400
d) balance of the Sales account at June 30. 26,312,800

​Here are the correct answers, can you please tell me how they were computed.

Answer 1

Req 1A:
Sales tax collected:
Total credit in sales aaccount(i.e. Sales revenue+Sales tax): $ 5302,800
Therefore, sales revenue for June (5302,800 /108*100): $4910,000
Sales tax collected in June: $5302,800 - $ 4910,000 = $ 392,800
Req 1B:
Sales tax paid for the month of april-June:						1,107,200
Less: may sales tax paid on April sales-Given						378400
Less: June sales tax paid on May sales ($ 4240,000*8%)						339200
April sales tax paid on march sales						389,600
Therefore, march sales revenue (389600 /8 *100)						$4,870,000
Req 1c:
Total credits in sales account in April:
sales tax collected @8%: $ 378,400
Sales revenue for April: ($ 378400 /8% *100) = $4730,000
Total sales credits of April = $4730,000 + $ 378400 = $5108,400
Req 1d:
Sales revenue for jan to mar:			12,040,000
Sales revenue for April			4,730,000
sales revenue for May-Given			4,240,000
sales revenue for June:			4,910,000
Total Sales revenue for six months			25,920,000
Add: Sales tax collected for June			392,800
Balance in sales account			26,312,800
Note: sales atx of earlier months would have been paid. Hence, not included in sales Account