During the current year, casual wear co. had total retail sales of $800,000 and collected a 5% state sales tax on all sales. at the end of the prior year, casual wear had $4,500 in sales taxes that had not been remitted to the state authorities. during the current year, casual wear remitted $39,500 in state sales tax. what amount should be recorded in casual wear's current-year financial statements?

The $5,000 should be recorded in Casual Wear's current-year financial statements

Explanation:

The computation of the ending balance of sales tax payable is shown below:

= Total Retail sales × state sales tax + sales tax at the end of the year - remitted states sales tax

= $800,000 × 5% + $4,500 - $39,500

= $40,000 + $4,500 - $39,500

= $44,500 - $39,500

= $5,000

The state sales tax should always be computed on the retail sales.

the answer is account d