Answer:
727 debit seller, credit buyer
Explanation:
To begin, it is imperative to find the monthly tax rate.
Therefore, we have;
$1,700 ÷ 12 = $141.67 monthly rate.
This can be pruned further to obtain our daily rate. Hence,
$141.67 ÷ 30 = $4.72 daily rate
Seller owes 5 months - first 5 months of the previous year: $141.67 x 5 = $708.35
Additionally, the seller owes 4 days(this represents 1st to 4th of June):
Therefore, we have;
$4.72 x 4 = $18.88
Total amount that will appear on the settlement sheet is thus;
$708.35 + $18.88 = $727 debit seller, credit buyer
