Kathy's Corner Store has total cash sales for the month of $36,000 excluding sales taxes. If the sales tax rate is 5%, what journal entry is needed? (Ignore Cost of Goods Sold.)
A.
debit Cash $37,800, credit Sales $37,800
B.
debit Cash $36,000 and credit Sales $36,000
C.
debit Cash $34,200, debit Sales Tax Receivable for $1,800 and credit Sales for $36,000
D.
debit Cash $37,800, credit Sales $36,000 and credit Sales Tax Payable $1,800