The Route 66 Gift Shop,which Records Sales and Sales Tax

The Route 66 Gift Shop,which records sales and sales tax separately,had sales on account of $1,500 and cash sales of $1,000.The state sales tax is 8%.The journal entry to record the sales would include a:

A) Debit to Sales Tax Payable for $75.
B) Debit to Cash of $1,000.
C) Credit to Sales Revenue of $2,700.
D) Debit to Accounts Receivable of $1,620 and a debit to Cash of $1,080.