Kathy's Corner Store has total cash sales for the month of $38,000 excluding sales taxes. If the sales tax rate is 8%, which journal entry is needed? (Ignore Cost of Goods Sold.)
A) debit Cash $41,040, credit Sales Revenue $41,040
B) debit Cash $38,000 and credit Sales Revenue $38,000
C) debit Cash $34,960, debit Sales Tax Receivable for $3040 and credit Sales Revenue for $38,000
D) debit Cash $41,040, credit Sales Revenue $38,000 and credit Sales Tax Payable $3040
D
Business
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