Loong Industries Sells Materials on March 16 for $12,000 Cash

question 16

Multiple Choice

Loong Industries sells materials on March 16 for $12,000 cash, subject to 8% sales tax. The cost of the materials sold is $5,700. The revenue portion of the transaction is recorded as:

• A)Debit Cash $12,000; credit Sales Taxes Payable $960; credit Sales $11,040.
• B)Debit Accounts Receivable $12,960; credit Sales $12,000; credit Sales Taxes Payable $960.
• C)Debit Cash $12,960; credit Sales $12,000; credit Sales Taxes Payable $960.
• D)Debit Sales $12,960; credit Cash $12,000; credit Sales Taxes Payable $960.
• E)Debit Cash $12,960; credit Sales $12,960.

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Definitions:

LaPiere

A reference to Richard LaPiere, a sociologist known for his studies on attitudes and social behaviors, particularly regarding prejudice and discrimination.

Correspondence

In communication, it refers to the exchange of messages or information between two or more parties either through speaking, writing, or using some other medium.

Attitudes And Behaviour

The study of the relationship between people's evaluative orientations and their actions, emphasizing how attitudes can influence or predict behavior.

Perceived Behavioural Control

An individual's belief about the ease or difficulty of performing a particular behavior, influenced by the resources and obstacles anticipated.