Comment by stavros
1 year ago
I see, and would that transaction get four entries (two for the money, two for the tax), or three (two for the money, one for the tax)?
1 year ago
I see, and would that transaction get four entries (two for the money, two for the tax), or three (two for the money, one for the tax)?
Neither of those cases precisely. The vendor's transaction record for such a sale would include a debit to cash, a credit to revenue, and a credit to sales tax liability.
The total amount of the credits would equal the cash debit.