A company receives $264 of which $24 is for sales tax.Recording the sale would include a(n)

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Sales tax is a liability until it is remitted to the government, therefore the recording of the sale would result in an increase to Sales Taxes Payable for $24. The increase to Cash would be for $264 - the full amount received. There is no decrease to Sales Revenue as the full amount received needs to be accounted for. There is also no increase to Sales Taxes Expense as that would be an expense account used for recording the amount of taxes paid, not the amount owed.

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