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

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

Quizplus · Accepted Answer

When companies send sales taxes collected from customers to the government, the sales taxes payable account is debited (decreasing the liability) and cash is credited (decreasing the asset).

Sales Taxes Payable Is Credited and Cash Is Debited When