Cantrell Company Is Required by Law to Collect and Remit

Multiple Choice

Cantrell Company is required by law to collect and remit sales taxes to the state.If Cantrell has $8,000 of cash sales that are subject to an 8% sales tax,what is the journal entry to record the cash sales?

A) Debit Cash $8,000;credit Sales $7,360;credit Sales Taxes Payable $640.
B) Debit Sales Taxes Payable $640;debit Cash $7,360;credit Sales $8,000.
C) Debit Cash $8,000;credit Sales $8,000;and record the taxes when paid.
D) Debit Cash $8,640;credit Sales $8,000;credit Sales Taxes Payable $640.
E) Debit Accounts Receivable $8,640;credit Sales $8,000;credit Sales Taxes Payable $640.