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Merchandise is sold for cash. The selling price of the merchandise is $3,200 and the sale is subject to a 5% state sales tax. The journal entry to record the sale would include a credit to a.Cash for $3,200 b.Sales for $3,360 c.Sales Tax Payable for $160 d.Sales for $3,040

Respuesta :

Answer:

Option (c) is correct.

Explanation:

Given that,

Selling price of the merchandise = 3,200

State sales tax = 5%

Sales tax payable:

= Sales revenue x Sales tax rate

= $3,200 × 5%

= $160

Therefore, the journal entry is as follows:

Cash A/c Dr. $3,360

    To sales          $3,200

    To sales tax    $160

(To record the sale)

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