Question
A company sells $190,000 (sales price) of goods and collects sales tax of 6%. What current liability does the sale create? A. Sales tax payable
A company sells $190,000 (sales price) of goods and collects sales tax of 6%.
What current liability does the sale create?
A.
Sales tax payable of $11,400
B.
Unearned revenue of $11,400
C.
Sales revenue of $201,400
D.
None; the company collected cash up front.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fraud examination
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
4th edition
538470844, 978-0538470841
