The agreed cost of an item to be purchased by a business on credit is $4,000. The applicable cost will be debited to advertising expense. The item is subject to 5% goods and services tax (GST) and 7% provincial sales tax (PST). When this transaction is recorded, what amount will be recorded as GST Receivable?

a None of these answers is correct.
b $200 Credit
c $200 Debit
d $240 Debit
e $240 Credit