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Merchandise Is Sold for Cash

Question 117

Multiple Choice

Merchandise is sold for cash.The selling price of the merchandise is $6,000 and the sale is subject to a 7% state sales tax.The journal entry to record the sale would include a credit to


A) cash for $6,000
B) sales for $6,240
C) sales tax payable for $420
D) sales for $5,580

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