Sales Tax Flashcards
1
Q
What’s sales tax
A
Extra money that a company charges you
2
Q
Are sales tax revenue?
A
They are not revenue
3
Q
How does it work
A
Money that is collected from customers for the government
4
Q
Journal entry for sales tax
A
Debit Cash
Credit Revenue
Credit Sales Tax Payable
5
Q
when sales tax payable is to pay the government journal entry is what
A
Debit Sales tax Payable
Credit Cash
