Sales taxes payable is credited,and cash is debited when firms send sales taxes collected from customers to the government.

Name: Sales taxes payable is credited,and cash is debited when firms send sales taxes collected from customers to the government.
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Question

Quizplus · Accepted Answer

When firms send sales taxes collected from customers to the government, the sales taxes payable account is debited to decrease the liability, and cash is credited to reflect the outflow of cash.

Sales Taxes Payable Is Credited,and Cash Is Debited When Firms