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Question - In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.
1. Blossom Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $33,500 and sales taxes $1,675.
2. Oriole Company does not segregate sales and sales taxes. Its register total for April 15 is $25,970, which includes a 6% sales tax.
Required -
1. Prepare the entry to record the sales transactions and related taxes for Blossom Company.
2. Prepare the entry to record the sales transactions and related taxes for Oriole Company.
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