CHAPTER 11

SALES TAX


-A person or business to whom merchanside or services are sold is called a customer.


-A tax on a slae of merchandise or services is called a sales tax.


-The amount of sales tax collected is a business liability until paid to the state government.





SALES OF MERCHANDISE


-A sales of merchanside may be for cash or on account, it increases the revenue of a business.


-A sale in which cash is received for the total amount of the sale at the time of the transaction is called a cash sale.


-A sale in which a credit card is used for the total amount of the sale at the time of the transaction is called a credit card sale.





SALES INVOICE


- When merchandise is sold on account, the seller prepares a from showing what has been sold.


- An invoice describes the goods or services sold, the quanity, and the price.