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PAULINA RESENDIZ
on Dec 17, 2024

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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.
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dinesh channapareddyDec 18, 2024
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