During the month of June, Danielle's Boutique had cash sales of R$265,000 and credit sales of R$153,700, both of which include the 6% sales tax that must be remitted to the government by July 15.
Instructions
a. Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements.
b. How would the adjusting entry change if the 6% tax was a VAT rather than a sales tax?