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A company sells $ 1 4 0 , 0 0 0 ( sales price ) of goods and collects sales tax of 3 % .

A company sells $140,000(sales price) of goods and collects sales tax of 3%. What current liability does the sale create?
A. Sales tax payable of $4,200
B. Unearned revenue of $4,200
C. Sales revenue of $144,200
D. None; the company collected cash up front.
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