A company receives $264, of which $24 is for sales tax.The journal entry to record the sale would include a
A)debit to Sales Taxes Expense for $24.
B)credit to Sales Taxes Payable for $24.
C)debit to Sales Revenue for $264.
D)debit to Cash for $240.

Question

Quizplus · Accepted Answer

The sales tax collected is a liability until it is paid to the government, so it is credited to Sales Taxes Payable.

A Company Receives $264, of Which $24 Is for Sales