A company sells merchandise on account for $350 that is subject to a sales tax of 5%. Which of the following is true?

		Accounts receivable and Sales revenue are both increased by $378
		Accounts receivable and Sales revenue are both increased by $322
		Accounts receivable is increased by $378, Sales revenue is increased by $350, and Sales tax payable is increased by $28
		Cash is increased by $378 and Sales tax payable is increased by $28