During the current year, Casual Wear Co. had total retail sales of $800,000 and collected a 5% state sales tax on all sales. At the end of the prior year, Casual Wear had $4,500 in sales taxes that had not been remitted to state authorities. During the current year, Casual Wear remitted $39,500 in state sales tax. What amount should be recorded in Casual Wear's current-year financial statements?

a) $840,000 in sales revenue b) $39,500 in sales tax expense c) $40,000 in sales tax revenue d) $5,000 in sales tax payable