Create a Sales journal entries with sales tax?

Answer 1

When you sell a product or when you buy something? Here's the answer for both situations:

For a sale:

Debit.......... cash or A/R

Credit......... Revenue

Credit......... Sales Tax payable.

Then, when you pay the tax to the state:

Debit........... Sales tax payable

Credit.......... cash

If it's a purchase, you don't have to record sales tax separately unless you want to. If you're capitalizing an asset, it's included in the capitalized amount. But if it's a straight expense, and you want to post the sales tax, this would be the entry:

Debit........ expense account (say, for example, office expense)

Debit........ sales tax

Credit....... cash or A/P