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.© BrainMass Inc. brainmass.com June 3, 2020, 6:31 pm ad1c9bdddf
Total Sales inclusive of sales tax = 233200+153700=386900
A simple solution to make you understand how to make an adjustment entry for sales tax in the Journal.