Annual Operations Company Operates in a State Where There Is $\begin{array}{lccc}\text { Cash } & 500 & \\\text { Sales } & &500 & \\\end{array}$

Multiple Choice

Annual Operations Company operates in a state where there is a 6% sales tax.If a customer pays cash for merchandise with a sales price of $500,Annual Operations would record the transaction using which of the following journal entries?

A)
$\begin{array}{lccc}\text { Cash } & 500 & \\\text { Sales } & &500 & \\\end{array}$
B)
$\begin{array}{lccc}\text { Cash } &500 \\\quad \text { Sales Tax Payable } & &30\\\text { Sales } & &470 \\\end{array}$
C)
$\begin{array}{lccc}\text { Cash } &500 & \\\text { Sales Tax Expense } & 30 \\\quad \text { Sales Tax Payable } & & 30 \\\text { Sales } & &500 \\\end{array}$
D)
$\begin{array}{lccc}\text {Cash } & 530 \\\quad \text { Sales Tax Payable } & & 30 \\\text { Sales } && 500 & \\\end{array}$
E)
$\begin{array}{lccc}\text { Cash } &530 & \\\text { Sales Tax Expense } & 30 \\\text { Sales Tax Payable } & & 30 \\\text { Sales }& & 530\end{array}$