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 sale for which cash will be received at a later date is called a sale on ac-count. 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. T F The total price of merchandise sold plus the sales tax collected is recorded as a credit to the sales journal. T F A sale of merchandise increases the revenue of a business. T F To keep vendor accounts up to date, posting should be done frequently. T F A change in the balance of a customer account also changes the balance of the controlling account, accounts receivable. T F The total amount owed to all vendors is summarized in the controlling ac-count, accounts payable. T F When posting from u journal to ledger accounts for accounts receivable, the individual amounts are posted to the subsidiary ledger and the column totals arc posted to the controlling account in the general ledger. T F Some businesses use both general ledgers and subsidiary ledgers in their accounting systems. Classify each of the following accounts by writing the appropriate capital letter on the blank line. A - Asset L - Liability O - Owner's equity Cash Accounts Receivable Accounts Payable Purchases Sales Prepaid Insurance Miscellaneous Expense Sales Tax Payable Amanda Brooks, Capital Supplies Complete the following statements by placing the letter of tho one best answer on the blank line. A business that has the legal rights of a person and is owned by many persons is called a proprietorship partnership corporation none of these