Calculate the sales tax based on an 8% sales tax rate and determine which accounts and amount to debit or credit based on the following sales information: (This question is worth 10 points)

• Out of state sales $9,350
• Non-taxable in-state sales $2,200
• Sales to purchasers with valid resale certificates $7,095
• Shipping Charges billed at cost $550
• Non-taxable Installation charges $3,300
• Taxable sales $36,300
• Flat rate Handling Charges $825

1-Sales Tax Collected

2- Total Shipping and Handling Charges

3- Installation Charges

4- Total Cash Collected (including sales tax

5- Taxable Sales

CHOOSE:

Credit cash in bank $59,620

Credit cash in bank $62590

debit shipping & handling income 1375

debit sales income 36300

credit shipping & handling income 550

debit installation services income 3300

credit sales tax collected 2904

credit sales income 36300

credit installation services income 3300

debit cash in bank 62590

credit shipping &handling income1375

debit cash in bank 59620

credit sales tax payable 2970

debit sales tax payable 2970