In a sales journal used to record taxable sales, the total of the Accounts Receivable column should equal
A)the total of the Sales column.
B)the total of the Sales Tax Payable column.
C)the sum of the totals of the Sales Tax Payable column and the Sales column.
D)the difference between the total of the Sales Tax Payable column and the total of the Sales column.

Question

Quizplus · Accepted Answer

The total of the Accounts Receivable column in a sales journal used to record taxable sales should equal the sum of the totals of the Sales Tax Payable column and the Sales column. This is because the amount receivable from customers includes both the sales amount and the sales tax charged on those sales.

In a Sales Journal Used to Record Taxable Sales, the Total