A cash register tape shows cash sales of $1,800 and sales taxes of $126. The journal entry to record this information is
a.
$\begin{array}{lrr}
\text {Cash } &1,926\
\text {Sales Revenue } &&1,926\
\end{array}$

b.
$\begin{array}{lrr}
\text {Cash } &1,926\
\text {Sales Taxes Payable } &&126\
\text { Sales Revenue } &&1,800\
\end{array}$

c.
$\begin{array}{lrr}
\text {Cash } &1,800\
\text { Sales Tax Expense.} &126\
\text { Sales Revenue } &&1,926\
\end{array}$

d.
$\begin{array}{lrr}
\text { Cash } &1,926\
\text {Sales Revenue } &&1,800\
\text { Sales Taxes Revenue. } &&126\
\end{array}$

Question

A cash register tape shows cash sales of $1,800 and sales taxes of $126. The journal entry to record this information is
a.
 $\begin{array}{lrr}
  \text {Cash  } &1,926\
 \text {Sales Revenue  } &&1,926\
\end{array}$

b. 
$\begin{array}{lrr}
  \text {Cash  } &1,926\
 \text {Sales Taxes Payable  } &&126\
 \text { Sales Revenue } &&1,800\
\end{array}$

c.
$\begin{array}{lrr}
  \text {Cash  } &1,800\
 \text {  Sales Tax Expense.} &126\
 \text { Sales Revenue } &&1,926\
\end{array}$

d.
 $\begin{array}{lrr}
  \text { Cash } &1,926\
 \text {Sales Revenue  } &&1,800\
 \text { Sales Taxes Revenue. } &&126\
\end{array}$

Quizplus · Accepted Answer

The journal entry should record the cash received as well as the sales revenue and sales tax payable. Therefore, option B is correct as it records Cash 1,926, Sales Revenue 1,800 and Sales Taxes Payable 126.

A Cash Register Tape Shows Cash Sales of $1,800 and Sales