The Correct Entry to Record the Purchase of a Motor

Multiple Choice

The correct entry to record the purchase of a motor vehicle for $40 000 cash, plus 10% GST is which of the following?

A) DR Motor vehicles $44 000; CR Bank $44 000
B) DR Motor vehicles $40 000; DR GST receivable $4000; CR Bank $44 000
C) DR Motor vehicles $44 000; CR Bank $40 000; CR GST collected $4000
D) DR Motor vehicles $36 000; DR GST receivable $4000; CR Bank $40 000