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A company receives $105 for merchandise sold to a consumer, of which $5 is for sales tax. When this transaction is recorded, the $5 of
A company receives $105 for merchandise sold to a consumer, of which $5 is for sales tax. When this transaction is recorded, the $5 of sales tax:
a. | is included in sales revenue. | |
b. | increases current liabilities. | |
c. | increases sales tax expense (decreases RE). | |
d. | none of the above. |
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