Answered: When a company remits sales tax to the…

When a company remits sales tax to the local government, the journal entry will include: O Credit to sales revenue O Debit to cash O Debit to sales tax payable O Debit to sales tax expense

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 4Q: How is the sales tax rate usually determined? Does the company get to keep the sales tax as earned...

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Question

When a company remits sales tax to the local government, the journal entry will include:

O Credit to sales revenue

O Debit to cash

O Debit to sales tax payable

O Debit to sales tax expense

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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