LIFO for Life Corp is a company that sells small children's clothing . On December 31 2017 the company's sales revenue account showed a total of $250,000 ( all sales were cash sales ) . The sales tax for the county where LIFO operates is 6 % . No sales tax has been remitted to the government as of December 31 . 2017 . Assume that when the company initially records its sales transactions , it records the total amount of cash received in the sales revenue account . The entry during 2017 to initially record the sales includes a debit to