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If the amount of a company's Sales account is $ 6 3 6 , 0 0 0 for the year and includes sales tax at

If the amount of a company's Sales account is $636,000 for the year and includes sales tax
at a rate of 6%, how much should the company report in the income statement as Sales and
Sales Tax Expense
$500,000 for Sales and nothing for Sales Tax Expense
$636,000 for Sales and $35,000 for Sales Tax Expense
$6014000 for Sales and nothing for Sales Tax Expense
$600,000 for Sales and $36,000 for Sales Tax Expense
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