At the end of 2010 the balance in the sales tax expense, Ask an Expert

Accounting

Reported sales revenue for 2010 is $1,908,000. This includes all sales taxes collected for the year. The sales tax rate is 6%. Because the sales tax is forwarded to the state's Department of Revenue, the Sales Tax Expense account is debited. The bookkeeper thought that "the sales tax is a selling expense." At the end of 2010, the balance in the Sales Tax Expense account is $103,000. Do the correcting journal entry for December 31, 2010.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M940231

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