Asked by
PAULINA RESENDIZ
on Dec 17, 2024Verified
Sold merchandise subject to a sales tax, accepting cash. This will be recorded with:
A) a credit to an asset account.
B) a credit to a liability account.
C) a debit to Sales.
D) a debit to Sales Tax Payable.
Sales Tax Payable
A liability account that accumulates the collected sales tax from customers to be remitted to the respective tax authorities.
Asset Account
An asset account is a category in the financial statements that reports the value of a company's assets, such as cash, inventory, property, and equipment.
Liability Account
A type of accounting ledger entry that represents a company's legal debts or financial obligations that arise during business operations.
- Examine the impact of sales taxes on transaction activities and account statements.
Verified Answer
DC
Learning Objectives
- Examine the impact of sales taxes on transaction activities and account statements.