**Question:**Which of the following represents the correct journal entry to record a taxable cash sale of $400 if the sales tax rate is 5%?**Multiple Choice Options:**1. A debit to cash for $420, a debit to sales tax expense for $20, and a credit to sales revenue for $400.2. A debit to cash for $400, a credit to sales tax payable for $20, and a credit to sales revenue for $380.3. A debit to cash for $420, a credit to sales tax payable for $20, and a credit to sales revenue for $400.4. None of these answer choices are correct.

Introduction:- At the time of record received sales tax from customers, journal entry will be, debit your Cash account(Asset increase), and credit your Sales Revenue and Sales Tax Payable accounts (Liability increases).Explanations:- Date Accounting tittles and explanations Debit Credit XXX Cash $420 To Sales Revenue $400 To Sales Tax Payable $20 Note:- Sales value = $400 Sales tax = $400 x 5% = $20Conclusion:- As per the above discussions option "C" is the correct answer, which satisfies the given requirement and remaining options do not satisfies the given requirement... I hope helpful to you.. If you are satisfied.. Support me.. Thank you..

Business

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Which of the following represents the correct journal entry to record a taxable cash sale of $400 if the sales tax rate is 5%? Multiple Choice A debit to cash for $420, a debit to sales tax expense for $20, and a credit to sales revenue for $400. A debit to cash for $400, a credit to sales tax payable for $20, and a credit to sales revenue for $380. A debit to cash for $420, a credit to sales tax payable for $20, and a credit to sales revenue for $400. None of these answer choices are correct.

Which of the following represents the correct journal entry to record a taxable cash sale of $400 if the sales tax rate is 5%? Multiple Choice A debit to cash for $420, a debit to sales tax expense for $20, and a credit to sales revenue for $400. A debit to cash for $400, a credit to sales tax payable for $20, and a credit to sales revenue for $380. A debit to cash for $420, a credit to sales tax payable for $20, and a credit to sales revenue for $400. None of these answer choices are correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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