Question

A company receives $280, of which $25 is for sales tax. The Journal entry to record the sale would include acredit to Sales Taxes Payable for $25. debit to Sales Revenue for $280. debit to Cash for $255. debit to Sales Taxes Expense for $25

Answer 1

The correct entry would be a debit to Cash for $255, and a credit to Sales Revenue for $280, and a credit to Sales Taxes Payable for $25.