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:

Equivocality

The quality of being open to more than one interpretation; ambiguity especially in the context of organizational communication and decision-making.

Processes of Organizing

The series of actions and mechanisms put in place to arrange resources and activities logically and efficiently within an organization to achieve goals.

Self-Organizing Systems

Systems characterized by a lack of equilibrium typically due to a large influx of new information or significant environmental shifts and are thus in the process of acting on this new information as a process of self-renewal. Self-organizing systems exhibit autocatalysis; that is, the catalysts for change and renewal occur in elements of the system itself as it seeks to renew itself.

Punctuated Meaning

A situation where a sudden event or realization leads to a significant change in understanding or interpretation of a situation or concept.