Answer:
D) a debit to Accounts Receivable for $572,250
Explanation:
Journal entry
Dr Accounts Receivable 572,250
Cr Sales Revenue 525,000
Cr Sales Tax Payable 47,250
($525,000 × 9%)
Therefore a debit to Accounts Receivable for $572,250 would be included in the journal entry to record the sales.
Answer:
D) a debit to Accounts Receivable for $572,250
Explanation:
When revenue is earned but cash is yet to be received and sales tax are to be accounted for at 9%, the entries required are;
Debit Accounts receivable 109%
Credit Revenue account 100%
Credit Sales tax payable 9%
Hence the amount to be accounted in accounts receivable
= 109% * $525,000
= $572,25 0
