Sales Taxes Collected from Customers Are Sent to the State

question 26

Multiple Choice

Sales taxes collected from customers are sent to the state government at the end of each month.What journal entry is prepared?

• A)debit Accounts Receivable and credit Sales
• B)debit Sales Tax Payable and credit Sales
• C)debit Accounts Payable and credit Cash
• D)debit Sales Taxes Payable and credit Cash

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Definitions:

Punish Wrongdoers

The act of imposing a penalty on individuals or entities found to have violated laws or rules.

Contractual Promises

A commitment or guarantee included within a contract that one or both parties agree to carry out.

Compensate Victim

The act of providing restitution or payment to a person who has suffered harm or loss as a result of another's action.

Breach Of Contract

The violation of any terms or conditions within a legally binding agreement.