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A company sells $ 1 6 0 , 0 0 0 ( sales price ) of goods and collects sales tax of 8 % .

A company sells $160,000(sales price) of goods and collects sales tax of 8%. What current liability does the sale create?
A. Sales tax payable of $12,800
B. Sales revenue of $172,800
C. Unearned revenue of $12,800
D. None; the company collected cash up front.
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