On January 1, 2020, Shoppers Inc. purchased merchandise for resale for $35,000 on credit terms 1/15, n/30. Shoppers Inc. uses the gross method to record purchases. Shoppers Inc. sells $15,000 of inventory during the first week of January 2020 to customers for $28,000, which includes a 5% sales tax. The liabilities resulting from the above transactions include.

Accounts Payable Sales Tax Payable

A. $35,000 $1,333

B. $34,650 $1,333

C. $35,000 $1,400

D. $34,650 $1,400