Lowes is required by law to collect and send sales taxes to the state. If Lowes...

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Lowes is required by law to collect and send sales taxes to the state. If Lowes has $87,000 of cash sales that are subject to a 5% sales tax, what is the journal entry to record the cash sales? Multiple Choice O O Debit Cash $87,000; credit Sales $87,000; and record the taxes when paid. Debit Cash $87,000; credit Sales $82,650; credit Sales Taxes Payable $4,350. Debit Accounts Receivable $91,350; credit Sales $87,000; credit Sales Taxes Payable $4,350. Debit Sales Taxes Payable $4,350; debit Cash $82,650; credit Sales $87,000. Debit Cash $91,350; credit Sales $87,000; credit Sales Taxes Payable $4,350. Lowes is required by law to collect and send sales taxes to the state. If Lowes has $87,000 of cash sales that are subject to a 5% sales tax, what is the journal entry to record the cash sales? Multiple Choice O O Debit Cash $87,000; credit Sales $87,000; and record the taxes when paid. Debit Cash $87,000; credit Sales $82,650; credit Sales Taxes Payable $4,350. Debit Accounts Receivable $91,350; credit Sales $87,000; credit Sales Taxes Payable $4,350. Debit Sales Taxes Payable $4,350; debit Cash $82,650; credit Sales $87,000. Debit Cash $91,350; credit Sales $87,000; credit Sales Taxes Payable $4,350.

Answer rating: 100% (QA)

The correct answer is the fourth option Debit Sales Taxes Payable 4350 Debit 82650 Cre... View the full answer