[shawnl112]

Both Curry and the State have a general sales tax on all merchandise. Curry City’s tax rate is 2 percent and the state’s rate is 4 percent. Merchants are required by law to remit all sales tax collected each month to the state by the 15th of the following month. By law, the state has 45 days to process the collections and to make disbursements to the various jurisdictions for which it acts as an agent. Sales tax collected by merchants in Curry City total $450,000 in May and $600,000 in June. Both merchants and the state make remittances in accordance with statutes. What amount of sales tax revenue for May and June is included in the June 30 year-end financial statements of the state and Curry city?

State Curry
A. 700,000 350,000
B. 1,050,000 0
C. 300,000 150,000
D. 1,050,000 350,000

Can someone explicit show how we get the answer? Thanks

[Anonymous]

Is the answer A? If so, then it would be just a 2-to-1 split on accrual basis.

[Author]

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