Which of the following represents the impact of a taxable cash sale of $400 on the accounting equation if the sales tax rate is 5%?

Multiple Choice

a. None of these answer choices is correct.

b. An increase to cash for $420, an increase to sales tax expense for $20, and an increase to sales revenue for $400.

c. An increase to cash for $400, an increase to sales tax payable for $20, and an increase to sales revenue for $380.

d. An increase to cash for $420, an increase to sales tax payable for $20, and an increase to sales revenue for $400.