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Metropolitan Masonry Had Sales on Account of $7,700 Which Were

Question 107

Multiple Choice

Metropolitan Masonry had sales on account of $7,700 which were subject to state sales tax of 10%. The entry to record the sales would be to:


A) debit Accounts Receivable, $8,470; credit Sales revenue, $7,700; credit Sales tax payable, $770.
B) debit Accounts Receivable, $8,470; credit Sale revenue, $8,470.
C) debit Accounts Receivable, $7,700; credit Sales revenue, $7,700.
D) debit Accounts Receivable, $7,700; debit Sales tax payable, $770; credit Sales revenue, $8,470.

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