Question

A sold merchandise for cash subject to a sales tax accepting cash will be recorded with a

a. credit to an asset account.

b. debit to a liability account.

c. debit to capital.

d. none of the above

Answer 1

The correct answer to the question is letter D. None of the above.

Answer 2

The answer to this question is to debit in a liability account. Liability account is a type of general ledger account which business or a company records it debts, deposits, income taxes that are from the previous transactions. When accounts are debited to the liability account it means that the company reduced its liabilities and its accountabilities.