$22$

Cantrell Company is required by law to collect and send sales taxes to the state. If Cantrell has $$12,000$ of cash sales that are subject to an $9\%$ sales tax, what is the journal entry to record the cash sales?

Multiple Choice

Debit Cash $$13,080$; credit Sales $$12,000$; credit Sales Taxes Payable $$1,080.$

Debit Cash $$12,000$; credit Sales $$12,000$; and record the taxes when paid.

Debit Accounts Receivable $$13,080$; credit Sales $$12,000$; credit Sales Taxes Payable $$1,080.$

Debit Sales Taxes Payable $$1,080$; debit Cash $$10,920$; credit Sales $$12,000.$

Debit Cash $$12,000$; credit Sales $$10,920$; credit Sales Taxes Payable $$1,080.$

MC