A refund from checking? Why?
I’d issue a credit memo for the tax then apply the memo as a payment to the
original invoice. This will balance out the invoice and reduce your tax
liability account. I don’t see why the checking account should enter into the
picture.
The entry as a result of the
I’ve been looking for the proper way to handle this situation.
In November, I invoiced a customer for a job that included sales tax. At the
end of the month, I paid it to the state as required.In mid December, they
payed sans sales tax and sent an exemption certificate.
I showed the balance as
