The account that would be credited for the amount of tax collected and paid on sales would be

Question

Quizplus · Accepted Answer

Sales Tax Payable is a liability account that is used to track the amount of sales tax collected from customers and owed to tax authorities. This account should be credited when tax is collected and paid, indicating a decrease in the liability. The other options (Sales, Cash, and Accounts Payable) are not appropriate for recording sales tax transactions.

The Account That Would Be Credited for the Amount of Tax