105k views
4 votes
A sales associate is preparing a seller's net statement. She estimates a closing date of June 26. Taxes are estimated at $4,360 and interest for June is $3,540. If she rounds to the nearest $100, which entries should she make on the statement?

User Tekstrand
by
8.7k points

1 Answer

2 votes

Debit the profit and loss account by $7600 and credit taxes by $4,360 and also credit Interest account by $3,540

Step-by-step explanation:

Here, a sales associate prepares sellers net statement .,even it is a estimated statement .,but the date on June 26 it is a current statement

Accounting statement on June 26

Profit and loss account $7600 (debit)

To Taxes $4,360 (credit)

To Interest $3,540 (credit)

(being the amount allotted for Taxes and Interest)

Note:

Hence .,the total of taxes and interest itself appears as a rounded one .,so we need not make the amount to the nearest $100.

User Liviu
by
8.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories