Sold merchandise subject to a sales tax,accepting cash.This will be recorded with:

Name: Sold merchandise subject to a sales tax,accepting cash.This will be recorded with:
Brand: Quizplus
Rating: 5.0 (55 reviews)

Question

Quizplus · Accepted Answer

When merchandise is sold subject to a sales tax and cash is accepted, the cash received is credited to the Cash account and the sales tax collected is credited to a liability account called Sales Tax Payable. Therefore, the correct answer is a credit to a liability account (choice B).

Sold Merchandise Subject to a Sales Tax,accepting Cash