Sales Tax Collected is NEVER an Expense- it is  PAYABLE to government- now if the sales tax collected are included in the 1099K your Sales is overstated by the amount of Sales Tax Collected.

JE#1

Dr. Cash Received           10,650.00

      Fees Charge                   50.00

               Cr. Sales -Taxable (1099K amount Sales Tax included) ex.   $10,700.00

JE#2

Dr. Sales-Taxable (Sales Tax)   700.00

        Cr. Sales Tax Payable               700.00

To record Sales Tax charged to customer.

JE#3

Dr. Sales Tax Payable     700.00

     Cr. Bank(Cash)(Credit Card)   700.00

Payment made next month.

Please comment/advise/your thought.

Thank you