How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Mark D Your Own Question
Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1304
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
Type Your Tax Question Here...
Mark D is online now
A new question is answered every 9 seconds

I have a question regarding accounting tax.
, Yes. we

Customer Question

Hi!! My name is ***** ***** I have a question regarding accounting for sales tax.
JA: Thanks. Can you give me any more details about your issue?
Customer: Yes. we are a restaurant and account for sales tax in a daily journal entry...debit cash, credit sales, sales tax payable (a liability), etc. But we only pay sales tax on a quarterly basis. Do I need to do a monthly adjusting entry to accrue the taxes collected but not yet paid?
JA: OK got it. Last thing — Tax Professionals generally expect a deposit of about $32 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 1 year ago.
Category: Tax
Expert:  Mark D replied 1 year ago.

Hello Lynne.

The daily entries will take care of the accruing liability. When you make a payment to the sales tax agency, it will decrease the liability. If you are doing daily entries, there should be no need for a monthly adjustment unless there was an error or for rounding. Does this answer your question?

Related Tax Questions