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?

Question

Business

Yusuf Short

9 February, 00:45

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?

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Answers (1)

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Layne Gross · Answer 1

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

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.