Coghlan Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $16,380. All sales are subject to a 5% sales tax. Compute the sales taxes payable, and make the entry to record sales taxes payable and sales.
A) Sales taxes payable: $819; Entry: Debit Cash $15,561, Credit Sales $15,561, Credit Sales Taxes Payable $819
B) Sales taxes payable: $819; Entry: Debit Cash $16,380, Credit Sales $15,561, Credit Sales Taxes Payable $819
C) Sales taxes payable: $819; Entry: Debit Cash $16,380, Credit Sales $15,561, Credit Sales Taxes Payable $15,561
D) Sales taxes payable: $819; Entry: Debit Cash $16,380, Credit Sales Taxes Payable $819