Question

During the month of June, Bramble Boutique had cash sales of $292,950 and credit sales of $125,265, both of which include the 5% sales tax that must be remitted to the state by July 15. Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Step-by-step explanation:

Date Account Title and Explanation Debit Credit

30 June Sales Tax $19,915

($119,300 + $279,000) * 5%

Sales Tax payable $19,915

(To record sales tax payable)

Workings

Credit sales = $125,265 * 100/105 = $119,300

Cash sales = $292,950 * 100/105 = $279,000