Furniture World is required by law to collect and send sales taxes to the state. If Furniture World has $$95,000$ of cash sales that are subject to a $5\%$ sales tax, what is the journal entry to record the cash sales?

Multiple Choice

Debit Accounts Receivable $$99,750$; credit Sales $$95,000$; credit Sales Taxes Payable $$4,750.$

Debit Cash $$95,000$; credit Sales $$95,000$; and record the taxes when paid.

Debit Cash $$99,750$; credit Sales $$95,000$; credit Sales Taxes Payable $$4,750.$

Debit Cash $$95,000$; credit Sales $$90,250$; credit Sales Taxes Payable $$4,750.$

Debit Sales Taxes Payable $$4,750$; debit Cash $$90,250$; credit Sales $$95,000.$