Determine the account to be debited and the account to be credited for the following transactions of Drummond Contracting:A. Sold merchandise on credit. The transaction involved sales tax.B. Accepted a return of merchandise from a credit customer. The original sale involved sales tax.C. Received a check from a credit customer on account. (No discounts offered.)D. Sold merchandise on credit. The transaction did not involve sales tax.E. Gave an allowance to a credit customer for damaged merchandise. The original sale involved sales tax.
What will be an ideal response?
A. Debit Accounts Receivable; credit Sales and Sales Tax Payable
B. Debit Sales Returns and Allowances and Sales Tax Payable; credit Accounts Receivable
C. Debit Cash; credit Accounts Receivable
D. Debit Accounts Receivable; credit Sales
E. Debit Sales Returns and Allowances and Sales Tax Payable; credit Accounts Receivable
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