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    How to make an adjusting Entry for Sales Tax

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    7. (Adjusting Entry for Sales Tax) During the month of June, R. Attenborough Boutique had cash sales of $233,200 and credit sales of $153,700, both of which include the 6% 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.

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    Solution Preview

    Total Sales inclusive of sales tax = 233200+153700=386900
    Sales ...

    Solution Summary

    A simple solution to make you understand how to make an adjustment entry for sales tax in the Journal.