A sale of merchandise on account for $15,750 is subject to a 7% sales tax. (a)  Should the sales tax be recorded at the time of sale or when payment is received?At the time of sale  (b)  What is the amount recorded as sales? If required, round the answer to one decimal place.$ (c)  What is the amount debited to Accounts Receivable? If required, round the answer to one decimal place.$ (d)  What is the title of the account to which the $1,102.5 ($15,750 × 7%) is credited?Sales Tax Payable

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A:

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A: Here is the answer for the above question.

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A: Formula: Sales discount = Net sales x Discount rate

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