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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › sales tax
Sales tax is recorded as income in the accounts of the entity selling the goods..
This is false
My question to u is When an entity sells good..
We record like this —– Debit -trade receivables with the gross amount
credit- Sales tax
credit – Sales with the net amount
so its in the credit side cant it be income?
We credit for income (here, sales) and we credit for liabilities (here, sales tax)
