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

question 76

Multiple Choice

When a company collects sales tax from a customer,the event is recorded by:

• A)A debit to Sales Tax Expense and a credit to Sales Tax Payable.
• B)A debit to Cash and a credit to Sales Tax Payable.
• C)A debit to Sales Tax Payable and a credit to Sales Tax Expense.
• D)A debit to Sales Tax Payable and a credit to Cash.

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Definitions:

Borrowing

The act of receiving something with the intention of returning it or its equivalent, often referring to money with interest.

Chinese Consumers

Individuals or groups in China engaging in the purchase of goods and services.

US Goods

Products and commodities that are manufactured or produced within the United States.

Buy Yuan

An action that involves purchasing the Chinese currency, also known as Renminbi, likely as an investment or to pay for goods and services in China.