In May,a retailer recorded credit sales of $10,000.Assuming the sales tax rate is 7 percent,the entry to record the sales in the sales journal would include:
A) a debit to Accounts Receivable of $10,700.
B) a debit to Accounts Receivable of $10,000.
C) a credit to Sales of $10,700.
D) a debit to Sales Tax Payable of $700.

Question

Quizplus · Accepted Answer

The entry would include a debit to Accounts Receivable for the total amount due from customers, which is the sales amount plus sales tax ($10,000 + $700 = $10,700).

In May,a Retailer Recorded Credit Sales of $10,000