Mercury Ltd sold $4,000 of merchandise on a given day, plus 8% sales tax. All sales were on account. How should Stephanies Fashions record the sales transactions?

1. Accounts Receivable 4,320

Sales Revenue 4,320

B. Accounts Receivable 4,320

Sales Tax Payable 320

Sales Revenue 4,000

C. Accounts Receivable 4,320

Sales Tax Expense 320

Sales Revenue 4,000

C. Accounts Receivable 4,000

Sales Revenue 4,000