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BIM CO. sells products in a state where the sales tax rate is 10%. BIM began Year 2 with $100,000 in inventory and retained earnings.
BIM CO. sells products in a state where the sales tax rate is 10%. BIM began Year 2 with $100,000 in inventory and retained earnings. BIM CO. engaged in the transactions for Year 2.
1. Cash sales, not including sales tax, Year 2 amounted to $30,000 cash
2. Cost of goods sold was $18,000 for the year
3. Paid $3,600 in operating expenses for the year
4. Paid $2,250 in sales tax collected to the state agency
What is BIM CO's sales tax payable balance at the end of year 2?
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