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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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