Cypress Corp

Multiple Choice

Cypress Corp.had sales on account of $16,500 which were subject to state sales tax of 8%.The entry to record the sales would be to:

A) debit Accounts Receivable $16,500;debit Sales Tax Payable $1,320;credit Sales Revenue $17,820.
B) debit Accounts Receivable $17,820;credit Sales Revenue $16,500;credit Sales Tax Payable $1,320.
C) debit Accounts Receivable $16,500;credit Sales Revenue $16,500.
D) debit Accounts Receivable $17,820;credit Sales Revenue $17,820.