When a company collects sales tax from a customer,the event is recorded with a(n)_________ in Cash and a(n)_________ in Sales Tax Payable:
A)increase;decrease
B)increase;increase
C)decrease;increase

Question

Quizplus · Accepted Answer

When a company collects sales tax from a customer, it increases its cash account because it has received payment. The company also increases its sales tax payable account because it owes this money to the government. Therefore, both accounts increase, making choice B the correct answer.

When a Company Collects Sales Tax from a Customer,the Event