Sales revenue for Joe's Sporting Goods for the current period amounted to $215,000. All sales are on account. The sales tax rate is 7%. The journal entry would include a debit to:
A. accounts receivable for $230,050
B. accounts receivable for $215,000
C. sales tax payable for $15,050
D. sales revenue for $215,000
Answer:A
Sales revenue for Joe's Sporting Goods for the current period amounted to $215,000. All sales are on account. The sales tax rate is 7%. The journal entry would include a debit to:
A. accounts receivable for $230,050 B. accounts receivable for $215,000 C. sales tax payable for $15,050 D. sales revenue for $215,000