Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $6,500 of cash sales that are subject to an 9% sales tax, what is the journal entry to record the cash sales?

• Debit Cash $6,500; credit Sales $5,915; credit Sales Taxes Payable $585.

• Debit Cash $7,085; credit Sales $6,500; credit Sales Taxes Payable $585.

• Debit Cash $6,500; credit Sales $6,500; and record the taxes when paid.

• Debit Sales Taxes Payable $585; debit Cash $5,915; credit Sales $6,500.

• Debit Accounts Receivable $7,085; credit Sales $6,500; credit Sales Taxes Payable $585.