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For questions relating to taxes collected on the sale of goods and services. In most cases, a country, region, or state/province tag should be included as well.

2 votes
1 answer
244 views

Can I skip Sales Tax Payable and just transfer directly to dedicated bank account?

I am trying to account for sales tax. I just totalled up a Quarter of sales tax and normally, I would create an entry like: Debit "Business Income Checking Account" (true checking account) Credit …
Brian David Berman's user avatar
2 votes
2 answers
143 views

Accounts Receivable included in Gross Sales?

I am trying to determine my sales tax. In a given quarter, let's say I close a deal for $2000 and collect $500 as a deposit. Which number is considered in my "Gross Sales", the $2000 or the $500? I …
Brian David Berman's user avatar
9 votes
3 answers
1k views

Is there a dollar amount that, when adding Massachusetts Sales Tax, precisely equals $200?

I am confused about calculating Massachusetts Sales Tax (6.25%). Is there such an amount, that when added to its sales tax, equals $200? The reason I ask is because my business has been charging $20 …
Brian David Berman's user avatar
0 votes
1 answer
315 views

Sales taxed amount in Accounts Receivable?

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 P …
Brian David Berman's user avatar
0 votes
1 answer
895 views

How do I deduct from Sales Tax Payable in Quickbooks?

(This question could probably use a better title) My current process for paying sales tax works as follows: I collect payments against invoices from clients throughout the month As I collect these …
Brian David Berman's user avatar