Sales revenue for a sporting goods store amounted to $525,000 for the current period. All sales are on account and are subject to a sales tax of 9%. Which of the following would be included in the journal entry to record the sales?
A)a debit to Sales Revenue for $525,000
B)a credit to Accounts Receivable for $525,000
C)a debit to Sales Tax Payable for $47,250
D)a debit to Accounts Receivable for $572,250

Question

Quizplus · Accepted Answer

The total amount to be recorded in Accounts Receivable includes both the sales revenue and the sales tax, which is $525,000 + ($525,000 * 9%) = $572,250.

Sales Revenue for a Sporting Goods Store Amounted to $525,000