3 points Save Answer A sales tax of 5% is in effect for a company. The company sells a product on credit. The (before-tax) price of the product is $32,000. The company records both the sales tax and the sales amount in the Sales account at the time of sale. Which of the following are correct if the required adjusting entry is skipped? (i) Sales revenue is understated by $1,600. (ii) Sales revenue is overstated by $1,600. (i) Sales Taxes Payable is understated by $1,600. (iv) Sales Taxes Payable is overstated by $1,600. OA (1) and (E) OB.) and (iv) (ii) and (ia) OD. (ii) and (IV)