When I enter a new invoice for a client, for example $1062.50 ($1000 + MA sales tax) do BOTH Accounts Receivable AND Sales Tax Payable go up by the following?

Accounts Receivable +1062.50 Sales Tax Payable +62.50

This just makes me feel like I am counting the 62.50 twice, which feels wrong.

Or is it like this?

Accounts Receivable +1000.00 Sales Tax Payable +62.50

1 Answer 1


A receivable is a positive entry, an asset. The tax due is a negative, an amount you owe.

The two add to $1000 if you add them up.

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