How do you account for sales tax owed for cash basis business when sales tax was never collected from customer? I can't reduce sales because sales tax was never collected. Which accounts do you journal? Please advise.
I hope you have checked with your state comptroller to insure that sales tax can be reported and paid under cash basis. I only know of three states that allow cash basis sales tax. It makes no difference to the state how the company books are kept in the majority of the states. Good luck.