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Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $10,000 of cash sales that are subject
Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $10,000 of cash sales that are subject to an 10% sales tax, what is the journal entry to record the cash sales? Multiple Choice Debit Sales Taxes Payable $1,000; debit Cash $9,000; credit Sales $10,000. Debit Cash $10,000; credit Sales $10,000; and record the taxes when paid. Debit Cash $10,000; credit Sales $9,000; credit Sales Taxes Payable $1,000. Debit Cash $11,000; credit Sales $10,000; credit Sales Taxes Payable $1,000. Debit Accounts Receivable $11,000; credit Sales $10,000; credit Sales Taxes Payable $1,000
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