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.

Prepare the entries to record the sales transactions and related taxes to Blossom Company.

1. Blossom Company Journal entry

April 10

Dr cash$35,175

Cr Sales $33,500

Cr Sales tax $1,675

2. Oriole Company Journal entry

April 15

Dr Cash $25,970

Cr sales $24,500

Cr Sales tax $1,470

Explanation:

1. Blossom Company Journal entry

April 10

Dr cash ($33,500+$1,675) $35,175

Cr Sales $33,500

Cr Sales tax $1,675

2. Oriole Company Journal entry

April 15

Dr Cash $25,970

Cr sales ($25,970/1.06) $24,500

Cr Sales tax $1,470

($25,970-$24,500)

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