On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $10,500 on account. If the sales tax on the sale is 7%, what is the amount debited to Accounts Receivable.

Question

Quizplus · Accepted Answer

The amount debited to Accounts Receivable will be the total amount of the sale including tax. 
Therefore, the total amount with tax is: 
$10,500 + ($10,500 x 0.07) = $11,235 
So the correct choice is C, which represents the total amount of the sale including tax.

On Deck Sports Memorabilia Store Sells a Babe Ruth Rookie