The entry to accrue sales tax expense includes a:
A)debit to Sales Tax Expense.
B)credit to Sales Tax Payable.
C)debit to Sales Tax Payable.
D)There is no accrual of sales tax expense.

Question

Quizplus · Accepted Answer

Sales tax collected from customers is not an expense to the business; it is a liability. Therefore, it is not accrued as an expense but rather recorded as a liability (Sales Tax Payable) when sales are made.

The Entry to Accrue Sales Tax Expense Includes A