C. Prepare an income statement for Harry's Haberdashery dated December 31,2015

Harry Haberdashery is a retail clothing store for men. The store operates out of a rented building in Albertville, Virginia. Shown below is the store's adjusted year-end trial balance dated December 31, 2015. Which of the following explanations is the best indication that that the business records inventory purchased net of any purchase discounts. The account "Purchase Discounts Lost" has a balance of $200 The account "Sales" has a balance of $190,000 The account "Merchandise Inventory" has a balance of $14,850 The account "Accounts Payable" has a balance of $12,000 * All of the above The store reports sales taxes payable of $2,950 in its adjusted trial balance. Which of the following best explains why there is no Sales Tax Expense account in the trail balance? The company debits accounts receivable and credits sales as well as sales taxes payable whenever it sells merchandise The company debits sales taxes payable and credits sales whenever it sells merchandise The company debits cash and credits sales whenever it sells merchandise The company debits sales and credits cash whenever it sells merchandise