9. Current Liabilities
Sales Tax Payable
Multiple Choice
Multiple ChoiceBlue Skies Supplies does not keep separate records of revenues and sales taxes at the time of sale. The register totals for October 21 are $20,776. All sales are subject to a 6% sales tax. If all cash receipts were originally included in Sales Revenue, the journal entry to adjust for sales taxes payable would include:
A
A debit to Sales Taxes Payable for $1,176
B
A debit to Sales Tax Expense for $1,246
C
A credit to Sales Taxes Payable for $1,176
D
A credit to Sales Taxes Payable for $1,246
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