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:

Cognitive Systems

Complex systems involved in the processing of information, encompassing functions such as perception, memory, judgment, and decision-making.

Internal Motives

Psychological drivers or desires that originate within an individual, guiding their behavior from the inside.

Autonomous Morality

The stage in moral development where individuals recognize that rules and laws are created for the good of the collective and can be questioned and modified.

Social Structure

The organized pattern of social relationships and social institutions that together compose society.