A company sells $120,000 (sales price) of goods and collects sales tax of 8%. What current liability does the sale create? OA. Unearned revenue of $9,600 OB. Sales revenue of $129,600 OC. Sales tax payable of $9,600 O D. None; the company collected cash up front.

A company sells $120,000 (sales price) of goods and collects sales tax of 8%. What current liability does the sale create? OA. Unearned revenue of $9,600 OB. Sales revenue of $129,600 OC. Sales tax payable of $9,600 O D. None; the company collected cash up front.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Vijay

A company sells $120,000 (sales price) of goods and collects sales tax of 8%. What current liability does the sale create? OA.
Unearned revenue of $9,600 OB. Sales revenue of $129,600 OC. Sales tax payable of $9,600 O D. None; the company
collected cash up front.

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