Questions: Base Electronics collects 1,400 in sales tax this month. To pay the sales tax, the journal entry would be: Date Accounts Debit Credit --- --- --- --- Cash 1,400 Sales Tax Expense 1,400 Date Accounts Debit Credit --- --- --- --- Sales Tax Payable 1,400 Cash 1,400 Date Accounts Debit Credit --- --- --- --- Cash 1,400 1,400 Sales Tax Payable Date Accounts Debit Credit --- --- --- --- Sales Tax Expense 1,400 1,400 Cash

Base Electronics collects 1,400 in sales tax this month. To pay the sales tax, the journal entry would be:

Date  Accounts  Debit  Credit 
---  ---  ---  --- 
  Cash  1,400  
  Sales Tax Expense    1,400 

Date  Accounts  Debit  Credit 
---  ---  ---  --- 
  Sales Tax Payable  1,400  
  Cash   1,400 

Date  Accounts  Debit  Credit 
---  ---  ---  --- 
  Cash  1,400  1,400 
  Sales Tax Payable    

Date  Accounts  Debit  Credit 
---  ---  ---  --- 
  Sales Tax Expense  1,400  1,400 
  Cash
Transcript text: Base Electronics collects $\$ 1,400$ in sales tax this month. To pay the sales tax, the journal entry would be: \begin{tabular}{|c|l|c|c|} \hline Date & \multicolumn{1}{|c|}{ Accounts } & Debit & Credit \\ \hline & \begin{tabular}{l} Cash \\ Sales Tax Expense \end{tabular} & 1,400 & \\ & & & 1,400 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Date & Accounts & Debit & Credit \\ \hline & \begin{tabular}{c} Sales Tax Payable \\ Cash \end{tabular} & 1,400 & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|} \hline Date & \multicolumn{1}{|c|}{ Accounts } & Debit & Credit \\ \hline & \begin{tabular}{l} Cash \\ Sales Tax Payable \end{tabular} & 1,400 & 1,400 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Date & Accounts & Debit & Credit \\ \hline & \begin{tabular}{c} Sales Tax Expense \\ Cash \end{tabular} & 1,400 & 1,400 \\ \hline \end{tabular}
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Solution

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Answer

The answer is:

\begin{tabular}{|c|l|c|c|} \hline Date & \multicolumn{1}{|c|}{ Accounts } & Debit & Credit \\ \hline & \begin{tabular}{l} Cash \\ Sales Tax Payable \end{tabular} & 1,400 & 1,400 \\ \hline \end{tabular}

Explanation
Option 1:

This option is incorrect because it debits Cash and Sales Tax Expense, which is not the correct treatment for sales tax collected.

Option 2:

This option is incorrect because it debits Sales Tax Payable and credits Cash, which is not the correct treatment for recording the collection of sales tax.

Option 3:

This option is correct because it debits Cash (indicating the receipt of cash) and credits Sales Tax Payable (indicating the liability to pay the sales tax collected).

Option 4:

This option is incorrect because it debits Sales Tax Expense and credits Cash, which is not the correct treatment for sales tax collected.

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