Which of the following accounts is credited by the seller when tax is collected on retail sales?
A) Accounts Payable
B) Payroll Tax
C) Sales Tax Payable
D) Unearned Revenue

Question

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Sales Tax Payable is credited by the seller when tax is collected on retail sales. This account represents the amount of sales tax collected from customers that is owed to the government. Accounts Payable represents amounts owed to vendors, Payroll Tax represents taxes deducted from employee pay for Social Security and Medicare, and Unearned Revenue represents payments received from customers for goods or services that have not yet been provided.

Which of the Following Accounts Is Credited by the Seller