circle T if the statement Is true; F it is false. T F businesses should record revenue at the actual time the money is received. T F The amount of sales tax collected by a business is a liability until it is paid to the government. T F The sales tax payable account has a normal debit balance. T F The accounts receivable account has a normal debit balance. T F The entry to record cash and credit card sales is a debit to the cash account and a credit to both the sales account and the sales tax payable account. T F A ssale for which cash will be received at a later date is called a sale on account. T F Only merchandise to be sold to customers is recorded in the purchases account. T F The sales account has a normal debit balance. The total price of merchandise sold plus the sales tax collected is tax collected is recorded as a credit to the sales journal. T F A sale of merchandise increases the revenue of a business. Sales Returns and Allowances is a contra account to Sales. A change in the balance of a customer account also changes the balance of the controlling account, accounts receivable. The total amount owed to all vendors is summarized in the controlling account, accounts payable. When post from a journal to ledger accounts for accounts receivable, the individual amounts are posted to the subsidiary ledger and the column totals are posted to the controlling account in the general ledger. T F Some businesses use both general ledgers and subsidiary ledgers in their accounting systems. T F A corporation's earnings distributed to stockholder are called dividends