Question

A company receives $161, of which $11 is for sales tax. The journal entry to record the sale would include a:

A: debit to Sales Revenue for $161.
B: debit to Cash for $161.
C: debit to Sales Taxes Payable for $11.
D: debit to Sales Taxes Expense for $11.

Answer 1

The journal entry to record the sale would include a debit to Sales Revenue for $161. Option a.

Step-by-step explanation:

The journal entry to record the sale would include a debit to Sales Revenue for $161. -$11 is the sales tax, which is not considered revenue for the company, so it would not be debited. Sales Revenue would be debited for the full amount of $161, as this represents the total amount received from the sale.

Therefore, the correct option is A: debit to Sales Revenue for $161.