Sales Revenue for a Sporting Goods Store Amounted to $215,000

question 76

Multiple Choice

Sales revenue for a sporting goods store amounted to $215,000 for the current period.All sales are on account and are subject to a sales tax of 7%.Which of the following would be included in the journal entry to record these sales?

• A) A debit to Sales revenue for $215,000
• B) A credit to Accounts receivable for $215,000
• C) A debit to Sales tax payable for $15,050
• D) A debit to Accounts receivable for $230,050

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Definitions:

Asset Costing

The process of determining the original total cost associated with acquiring an asset.

Loss

The amount of money a business loses when its expenses exceed its revenues.

Sale

The exchange of goods or services for money, representing a fundamental activity of business operations.

Plant Asset

Long-term tangible assets used in the operations of a business that are not intended for resale, such as machinery, buildings, and vehicles.