Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $8,500 of cash sales that are subject to an 7% sales tax, what is the journal entry to record the cash sales?

Multiple Choice

• Debit Cash $9,095; credit Sales $8,500; credit Sales Taxes Payable $595.

• Debit Sales Taxes Payable $595; debit Cash $7,905; credit Sales $8,500.

• Debit Accounts Receivable $9,095; credit Sales $8,500; credit Sales Taxes Payable $595.

• Debit Cash $8,500; credit Sales $7,905; credit Sales Taxes Payable $595.

• Debit Cash $8,500; credit Sales $8,500; and record the taxes when paid.

The following information is available on a depreciable asset owned by Mutual Savings Bank:

Purchase date	July 1, Year 1
Purchase price	$95,500
Salvage value	$11,800
Useful life	9 years
Depreciation method	straight-line

The asset's book value is $76,900 on July 1, Year 3. On that date, management determines that the asset's salvage value should be $6,800 rather than the original estimate of $11,800. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

Multiple Choice

• $5,007.14

• $2,746.43

• $2,503.57

• $2,082.14

• $2,436.61