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Hoots : Sales taxed amount in Accounts Receivable? When I enter a new invoice for a client, for example 62.50 (00 + MA sales tax) do BOTH Accounts Receivable AND Sales Tax Payable go up by the following? Accounts Receivable - freshhoot.com

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Sales taxed amount in Accounts Receivable?
When I enter a new invoice for a client, for example 62.50 (00 + MA sales tax) do BOTH Accounts Receivable AND Sales Tax Payable go up by the following?

Accounts Receivable +1062.50
Sales Tax Payable +62.50

This just makes me feel like I am counting the 62.50 twice, which feels wrong.

Or is it like this?

Accounts Receivable +1000.00
Sales Tax Payable +62.50


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A receivable is a positive entry, an asset.
The tax due is a negative, an amount you owe.

The two add to 00 if you add them up.


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