Sales tax is the percentage of sales given to the local or state government upon each transaction. Sales tax makes up a portion of the cash or accounts receivable given or promised by customers; the other portion is the actual sales revenue (cash/accounts receivable - sales tax). Sales tax is money owed to the government and thus, a liability on the balance sheet. It increases, with a credit entry, as the amount of tax grows with each purchase. It decreases when the tax money is paid to the government – with a debit entry to Sales Tax Liability.
341 Pine Tree Road, East Hill Plaza
Ithaca, NY 14850
|Accounting:||7:30 a.m. - 4:30 p.m., Monday - Friday|
|Payroll:||7:30 a.m. - 5:00 p.m., Monday - Friday|
|Office of the Bursar:||8:00 a.m. - 4:30 p.m., Monday - Friday|