When a company collects sales taxes, it debits Cash, and credits both Sales Revenue and Sales Tax Payable.Group startsTrue or False
Question
Solution 1
True. When a company collects sales taxes, it does indeed debit Cash and credit both Sales Revenue and Sales Tax Payable. This is because the company is receiving cash (hence the debit to Cash), part of which is sales revenue for the company (hence the credit to Sales Revenue), and part of which is Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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