During the month of June, Windsor Boutique had cash sales of $256,800 and credit

Question

During the month of June, Windsor Boutique had cash sales of $256,800 and credit sales of $167,776, both of which include the 7% 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.)

Date

Account Titles and Explanation

Debit

Credit

Open Show Work

Date

Account Titles and Explanation

Debit

Credit

Explanation / Answer

Date Account titles and explanations Debit Credit June 30 Cash 256800 Sales 240000 Sales tax liability 16800 Cash collected on sales with sales tax Date Account titles and explanations Debit Credit June 30 Accounts receivable 167776 Sales 156800 Sales tax liability 10976 Credit sales with sales tax

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