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2 February, 00:50

A company receives $348, of which $28 is for sales tax. The journal entry to record the sale would include a

1. debit to Sales Taxes Payable for $28.

2. debit to Sales Revenue for $348.

3. debit to Cash for $348.

4. debit to Sales Taxes Expense for $28.

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Answers (1)
  1. 2 February, 01:12
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    3) debit to Cash for $348.

    Explanation:

    The complete journal entries should be:

    Dr Cash account 348

    Cr Sales Revenue account 320

    Cr Sales Taxes Payable account 28

    Cash is an asset account and it increases, so it should be debited.

    Sales revenue is a revenue account and it increases, so it should be credited.

    Sales taxes payable is a liability and it increases, so it should be credited.
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