324 – Taxes Payable – Sales

Current Liabilities

Accrued Liabilities

Synopsis

Account 324

Debits

Credits

  1. Payments made to local and state agencies for sales and use taxes collected.

 

  1. The amount of sales tax collected from customers vehicle sales.

  2. Sales tax collected from parts and service customer sales.

  3. The use tax payable on merchandise used and on which sales or use tax was not paid at the time of purchase.

  4. The amount of use tax due on demonstrators.

  5. Miscellaneous sales and use taxes.

 

Remarks:

The balance in this account represents sales tax collections applicable to vehicle sales, service, parts and accessories sales; use tax due on merchandise consumed or used in the retailer activities; use tax on demonstrators; and miscellaneous sales and use taxes which have not been remitted to the taxing agencies.

All taxes should be paid on or before the required due date to avoid penalties.

The collection of sales taxes and the calculation of use taxes should conform to respective state and local regulations.

Note: