Which of the Following Represents the Correct Journal Entry to Record

question 59

Multiple Choice

Which of the following represents the correct journal entry to record a taxable cash sale of $800 if the sales tax rate is 5%?

• A)A debit to cash for $840, a debit to sales tax expense for $40, and a credit to sales revenue for $800.
• B)A debit to cash for $840, a credit to sales tax payable for $40, and a credit to sales revenue for $800.
• C)A debit to cash for $800, a credit to sales tax payable for $40, and a credit to sales revenue for $760.
• D)None of the above.

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Definitions:

On-Campus

Located within the grounds of a college or university.

Off-Campus

Referring to activities, housing, or locations that are not located within the grounds of a college or university.

Subsidized Loans

Loans where the government pays the interest while the borrower is in school, during grace periods, or during deferment periods.

Unsubsidized Loans

Loans where the borrower is responsible for the interest during all periods, starting from the time the loan is disbursed.