Furniture World is required by law to collect and send sales taxes to the state. If Furniture World has $87,000 of cash sales that are subject to a 5% sales tax, what is the journal entry to record the cash sales?

Multiple Choice

• Debit Cash $91,350; credit Sales $87,000; credit Sales Taxes Payable $4,350.

• Debit Sales Taxes Payable $4,350; debit Cash $82,650; credit Sales $87,000.

• Debit Cash $87,000; credit Sales $87,000; and record the taxes when paid.

• Debit Cash $87,000; credit Sales $82,650; credit Sales Taxes Payable $4,350.

• Debit Accounts Receivable $91,350; credit Sales $87,000; credit Sales Taxes Payable $4,350.