Corner 3 Hardware sells merchandise in a state where the sales tax rate is 6%. Sales tax is collected at the time of the sale but is not paid to the sales tax agency until the following month. During December 2016, Corner 3 Hardware sold $30,400 (excluding sales tax) of merchandise to customers. Which of the following is the correct general journal entry to record the sales?

	Debit	Credit
Cash	30,400
Sales Tax Expense	1,824
Sales Revenue		32,224

	Debit	Credit
Cash	32,224
Sales Tax Expense		1,824
Sales Revenue		30,400

	Debit	Credit
Cash	32,224
Service Revenue		32,224

	Debit	Credit
Cash	32,224
Sales Tax Payable		1,824
Sales Revenue		30,400

Answer rating: 100% (QA)

Debit your Accounts Receivable account for 32224 and credit your Revenue a... View the full answer