Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $9,500 of cash sales that are subject to an 9% sales tax, what is the journal entry to record the cash sales?

Multiple Choice

• Debit Cash $9,500; credit Sales $8,645; credit Sales Taxes Payable $855.

• Debit Cash $10,355; credit Sales $9,500; credit Sales Taxes Payable $855.

• Debit Accounts Receivable $10,355; credit Sales $9,500; credit Sales Taxes Payable $855.

• Debit Sales Taxes Payable $855; debit Cash $8,645; credit Sales $9,500.

• Debit Cash $9,500; credit Sales $9,500; and record the taxes when paid.