A business which is registered for sales tax purchases goods on credit at a cost of $500 plus sales tax at 17.5%.Which of the following correctly records the credit purchase?
A.
Debit Debit Credit Purchases Sales tax Purchases ledger control account $500.00 $87.50 $587.50
B.
Debit Credit Purchases Purchases ledger control account $587.50 $587.50
C.
Debit Debit Credit Purchases Sales tax Purchases ledger control account $412.50 $87.50 $500.00
D.
Debit Credit Credit Purchases Sales tax Purchases ledger control account $500.00 $87.50 $412.50