< Sales Tax A sale of merchandise on account for $14,600 is subject to a 6% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? At the time of sale (b) What is the amount credited to sales? (c) What is the amount debited to Accounts Receivable? (d) What is the account to which the $876.00 is credited? Sales Tax Payable Feedback Check My Work (a) When does the sales tax become a liability? (b) The amount recorded for the sale is the selling price of the merchandise. (c) Who is paying for the merchandise and the sales tax? (d) Sales tax is recorded in sales tax payable when collected and later debited when paid.