Merchandise is sold for cash. The selling price of the merchandise is $4,000, and the sale is subject to a 4% state sales tax. The journal entry for the sale would include a credit to

a. Cash for $4,000

b. Sales for $3,840

c. Sales Tax Payable for $160

d. Sales for $4,160

For a buyer using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a

a. credit to Accounts Payable

b. credit to Sales

c. debit to Cost of Merchandise Sold

d. credit to Merchandise Inventory

When merchandise that was sold is returned, a credit to Customer Refunds Payable is made.

True

False