easy · Financial Accounting liabilities-bonds-payable
A retailer collects $1,080 from a customer for a sale. The price of the goods was $1,000, and the remaining $80 represents an 8% sales tax.
How should the $80 be recorded?
- As an expense in the same period the cash is received.
- As a current liability called 'Sales Tax Payable'.
- As 'Sales Revenue' for the full $1,080.
- As a 'Gain on Sales Tax' in the non-operating section.
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