Aviation Holdings Corporation's sales for the day totalled $10,552. Jensen collected an additional

Name: Aviation Holdings Corporation's sales for the day totalled $10,552. Jensen collected an additional
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When sales tax is collected, it is not recognized as revenue by the company but rather as a liability because it needs to be remitted to the government. Therefore, the correct entry is a credit to Sales Tax Payable, indicating an increase in the company's liability.

Aviation Holdings Corporation's Sales for the Day Totalled $10,552