For a retailer required to collect sales taxes from customers, all of the following adaptations would be made to the sales journal except:
A) Column totals would continue to be posted as usual.
B) A Sales Taxes Payable credit column would be added.
C) There would be a separate Accounts Receivable debit column.
D) A Sales Taxes Payable debit column would be added.
E) There would be a separate Sales credit column.

Question

Quizplus · Accepted Answer

Sales taxes collected from customers are not debited to Sales Taxes Payable; instead, they are credited to this account because the retailer owes this amount to the government. The addition of a Sales Taxes Payable debit column would not be appropriate for tracking sales taxes collected.

For a Retailer Required to Collect Sales Taxes from Customers