Record Sales Tax Collected
Record collected sales tax as a liability instead of revenue.
Record a $1,080 card deposit where the POS report shows $1,000 product sales and $80 sales tax collected. Revenue is what the business earned; sales tax collected is an obligation until remitted. Posting the full deposit to revenue overstates sales and turns tax remittance into a fake expense later. Before $1,080 Product revenue now; $80 Tax expense when remitted later. After $1,000 Product revenue; $80 Sales tax payable; remittance reduces the payable. Step 1 Tie the bank deposit to the POS batch report. The bank amount proves cash; the POS report explains the components. Step 2 Record $1,000 to Product…
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