Cypress Corp

Multiple Choice

Cypress Corp. had sales on account of $19,500 which were subject to state sales tax of 12%. The entry to record the sales would be to:

A) debit Accounts Receivable $19,500; debit Sales Tax Payable $2,340; credit Sales Revenue $21,840.
B) debit Accounts Receivable $21,840; credit Sales Revenue $19,500; credit Sales Tax Payable $2,340.
C) debit Accounts Receivable $19,500; credit Sales Revenue $19,500.
D) debit Accounts Receivable $21,840; credit Sales Revenue $21,840.