There are two main scenarios where tax-only transactions are needed:

Scenario A occurs when the business owner forgot to charge sales tax on one or more invoices and is now invoicing the customer to recoup the sales tax Scenario B occurs when the business undergoes a Sales Tax Audit

The business owner realizes that he'll never be able to recoup the missed sales taxes from all the sales because there were too many sales transactions and perhaps small amounts of sales tax on each one. Therefore, he will have to pay the sales tax himself.

What should be done for each scenario?

• A. Invoice the customer for an item called Sales Tax. B. Write a check to the state for an expense account called Sales Tax Expense

• A. Invoice the customer for an item called Sales Tax. B. Enter a bill from the state for an account called Sales Taxes Payable

• A. Invoice the customer for a bundle, where the bundle is made up of +1 of a taxable item and -1 of the same item but not taxable. B. Create a Sales Receipt using a bundle, where the bundle is made up of +1 of a taxable item and -1 of the same item but not taxable. Override the sales tax to zero

• A. Invoice the customer for a bundle, where the bundle is made up of +1 of a taxable item and -1 of the same item but not taxable. B. Create a Sales Receipt using a bundle, where the bundle is made up of +1 of a taxable item and -1 of the same item but not taxable. Add an additional line for Sales Tax Expense and enter the amount of tax as a negative number