When companies pay the government collected sales tax sales taxes payable is credited and cash is debited true or false?

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1148000

2026-04-05 21:10

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True. When companies pay the government the collected sales tax, they credit the "Sales Taxes Payable" account, which reduces the liability, and they debit the "Cash" account to reflect the outflow of cash. This transaction effectively transfers the sales tax liability to the government.

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