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Which of the following represents the correct journal entry to record a taxable cash sale of $1,100 if the sales tax rate is 4%? Multiple
Which of the following represents the correct journal entry to record a taxable cash sale of $1,100 if the sales tax rate is 4%?
Multiple Choice
None of these answer choices are correct.
A debit to cash for $1,100, a credit to sales tax payable for $44, and a credit to sales revenue for $1,056.
A debit to cash for $1,144, a credit to sales tax payable for $44, and a credit to sales revenue for $1,100.
A debit to cash for $1,144, a debit to sales tax expense for $44, and a credit to sales revenue for $1,100.
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