Sales Tax Payable is a(n): Multiple Choice asset account with a normal debit balance. liability account...

Sales Tax Payable is a(n):

Multiple Choice

asset account with a normal debit balance.
liability account with a normal debit balance.
liability account with a normal credit balance.
revenue account with a normal credit balance.

Solutions

Expert Solution

Sales tax payable is a liability which is payable to government against sales rvenue

Sales tax Payable will come in transaction of sales revenue as below



Account Title and explanation

Cash / Account Receivable	Increases the assets - Debit Balance
Sales Revenue	Increases the shareholder's equity - Credit Balance
Sales Tax Payable	Increases the liability - Credit Balance

As per above explanation,

Answer = Option 3 = liability account with a normal credit balance

ekkarill92 answered 1 year ago

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