When a company collects sales tax from a customer the event

When a company collects sales tax from a customer, the event is recorded by: A debit to Sales Tax Expense and a credit to Sales Tax Payable. A debit to Cash and a credit to Sales Tax Payable. A debit to Sales Tax Payable and a credit to Sales Tax Expense. A debit to Sales Tax Payable and a credit to Cash. O DQuestion 3 Which of the following are included in an employer\'s payroll tax expense? Employer portion of FICA taxes. Federal unemployment taxes 6 All of the other answers are correct

Solution

The correct choice is : - A debit to sales tax payable and a credit to cash

Explanation : - When the company remits the taxes to the taxing agency, it debits sales tax payable and credits cash. The company does not report sales tax as an expense . It simply forwards to the government the amount paid by the customers.

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The correct choice is : - All of the other answers are correct

Explanation : - With every payroll, the employer incurs liabilities to pay various payroll taxes levied upon the employer. These payroll taxes include the employer\'s share of Social Security (FICA) taxes and state and federal unemployment taxes.