Kathy's corner store has total cash sales for the month of $35,000 excluding sales taxes. if the sales tax rate is 6%, which journal entry is needed? (ignore cost of goods sold.)

a. debit cash $35,000 and credit sales revenue $35,000
b. debit cash $36, 050, credit sales revenue $35,000 and credit sales tax payable $1, 050
c. debit cash $33, 950, debit sales tax receivable for $1, 050 and credit sales revenue for $35,000
d. debit cash $36, 050, credit sales revenue $36, 050

none of the answers is correct, the correct answer should be:

Explanation:

If Kathy sold $35,000 during the month and the sales tax is 6%, then she will have collected $37,100 in cash.

$35,000 belong to her as sales revenue and $2,100 (= $35,000 x 6%) is money she owes as sales taxes.

Since cash is an asset, when it increases it must be debited.

When revenue increases, it must be credited.

Sales tax payable is a liability, when it increases it must be credited.

Dr Cash 37,100 (= 35,000 + 2,100)

Cr Sales Revenue 35,000 (net revenue)

Cr Sales Tax Payable 2,100 (= 35,000 x 6%)

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

answer; (a) conduct a worksite inspection;