What Every CPA Should Know About Sales Tax
You use accounting entries to show that your customer paid you money and your revenue increased. Your state may have a list of products and services that you do not collect sales tax on. For example, prescription drugs are sales tax exempt in most states. Since the sales tax rate in the area is 6%, $3,600 (0.06 x $60,000) in sales taxes was collected on these sales. While many states expe …