Hina Limited Records a VAT Inclusive Figure for Sales Returns

Multiple Choice

Hina Limited records a VAT inclusive figure for sales returns of £9,600 for the month of October. All sales are made on credit and VAT is charged at the rate of 20% on the net sales value of each sale. What is the correct double entry to record these sale returns?

A) Debit trade receivables control account £9,600, Credit sales £8,000, Credit VAT £1,600.
B) Debit cash £9,600, Credit sales £8,000, Credit VAT £1,600.
C) Debit sales £8,000, Debit VAT £1,600, Credit cash £9,600.
D) Debit sales £8,000, Debit VAT £1,600, Credit trade receivables control account £9,600.