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Which of the following represents the correct journal entry to record a taxable cash sale 3) of $400 if the sales tax rate is 5%?
Which of the following represents the correct journal entry to record a taxable cash sale 3) of $400 if the sales tax rate is 5%? A) A debit to cash for $420, a credit to sales tax payable for $20, and a credit to sales revenue for $400. B) A debit to cash for $420, a debit to sales tax expense for $20, and a credit to sales revenue for $400. C) A debit to cash for $400, a credit to sales tax payable for $20, and a credit to sales revenue for $380. D) None of these answer choices is correct.
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