Which of the Following Represents the Correct Journal Entry to Record

question 7

Multiple Choice

Which of the following represents the correct journal entry to record a taxable cash sale of $400 if the sales tax rate is 5%?

• A)A debit to cash for $420,a debit to sales tax expense for $20,and a credit to sales revenue for $400.
• B)A debit to cash for $400,a credit to sales tax payable for $20,and a credit to sales revenue for $380.
• C)A debit to cash for $420,a credit to sales tax payable for $20,and a credit to sales revenue for $400.
• D)None of these answer choices are correct.

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Definitions:

Employees

Individuals who work part-time or full-time under a contract of employment, whether oral or written, express or implied, and have recognized rights and duties.

Dollars

A unit of currency used in various countries, including the United States, symbolized by the dollar sign ($).

Heights

The measurement of how tall a person or structure is, typically measured from base to top.

Grade 3 Students

Children who are in the third grade of school, typically aged between 8 and 9 years old.