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Anna11 [10]
2 years ago
14

During the month of June, Rowling Boutique had cash sales of$233,200 and credit sales of $153,700, both of which include the 6%s

ales tax that must be remitted to the state by July 15.
Instructions

Prepare the adjusting entry that should be recorded to fairlypresent the June 30 financial statements.
Business
1 answer:
Kitty [74]2 years ago
5 0

Answer:

Cash sales = $233,200 × (100 ÷ 106)

                  = $220,000

Credit sales = $153,700 × (100 ÷ 106)

                  = $145,000

Sales tax revenue = ($220,000 + $145,000) × 6%

                              = $21,900

Therefore, the Journal is as follows:

Sales tax revenue A/c Dr. $21,900

To sales tax payable                       $21,900

(To record the sales tax payable)

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Process of elimination:

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Answer:

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3 0
3 years ago
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By offering weekly workshops, Johnson's Fruit Farm is developing a core competency which will help them gain competitive advantage over other stores in their county.

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Which of the following would be considered the highest risk portfolio?
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