Proper Way to Enter Taxable Purchases

[Donna Pfeifer]

I have been looking for information for recording taxable purchases from a vendor for in-house use.

I have a liability account for Sales Tax Collected for sales.

Do I create another one for Sales Tax Owed?

Is it some sort of split transaction? If so, how do you reconcile at the end of the month as the amount paid (say $29.00) will come out of checking right away but the sales tax won’t be paid until after the end of the month.

Please keep replies on the basic level as I am new at this.

Thanks,
Donna