I just figured out this past year that a person in sales has to pay sales tax on items he uses for personal use or items he gives away as samples. Fortunately this person has very small sales tax amounts that are only paid on a yearly basis.
This is a bookkeeping question. I will credit sales tax payable with the amount she should pay for the personal use and samples she gives away. But what do I debit? Is it an expense? At least part of it should be...the tax on the samples. The rest is a personal expense?
As you can tell this one is on extension and I am trying to finish the bookkeeping on it. QB is driving me crazy!!!!! The last 2 invoices I entered with sales tax on them didn't post to the sales tax payable account and I don't know why. The invoice is like all the others. That is one reason I am switching to Taxslayer Books. Don't know if I will like it better, but it can't be worse.
Linda, EA
This is a bookkeeping question. I will credit sales tax payable with the amount she should pay for the personal use and samples she gives away. But what do I debit? Is it an expense? At least part of it should be...the tax on the samples. The rest is a personal expense?
As you can tell this one is on extension and I am trying to finish the bookkeeping on it. QB is driving me crazy!!!!! The last 2 invoices I entered with sales tax on them didn't post to the sales tax payable account and I don't know why. The invoice is like all the others. That is one reason I am switching to Taxslayer Books. Don't know if I will like it better, but it can't be worse.
Linda, EA
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