If Zion sells merchandise and collects sales tax, The account that the sales tax is going to be recorded is what is known as the sales tax payable.
What is the sales tax payable?
The account is a liability account that acts as a storage of sales tax that a firm has gotten from their customers on behalf of the tax authority of a country.
The business is the one that holds the money and they have to remit to the government on the required dates.
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