North, which is registered for sales tax, received an invoice from an advertising agency for $4,000...

  

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North, which is registered for sales tax, received an invoice from an advertising agency for $4,000 plus sales tax. The rate of sales tax on the goods was 20%. What would the correct ledger entries be? Debit $ Credit $ A. Advertising expense 4,000 Payables 4,000 B. Advertising expense 4,800 Payables 4,800 C. Advertising expense 4,800 Payables 4,000 Sales tax account 800 D. Advertising expense 4,000 Payables 4,800 Sales tax account 800 North, which is registered for sales tax, received an invoice from an advertising agency for $4,000 plus sales tax. The rate of sales tax on the goods was 20%. What would the correct ledger entries be? Debit $ Credit $ A. Advertising expense 4,000 Payables 4,000 B. Advertising expense 4,800 Payables 4,800 C. Advertising expense 4,800 Payables 4,000 Sales tax account 800 D. Advertising expense 4,000 Payables 4,800 Sales tax account 800

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Received Tax rale 20 What woul... View the full answer