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On a given day, the downtown Nike shoe store sold 1,000 pairs of shoes with a retail selling price of $125 per pair (assume all
On a given day, the downtown Nike shoe store sold 1,000 pairs of shoes with a retail selling price of $125 per pair (assume all sales were in cash), plus 10% sales tax. What journal entry should Nike record?
a credit to Sales Tax Payable of $12,500.
a debit to Sales Tax Expense for $12,500.
a credit to Sales Revenue of $112,500.
a debit to Cash of $125,000.
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