Northern Retailers Regularly Makes Payments to a State Government for the Sales

Northern Retailers regularly makes payments to a state government for the sales taxes resulting from its sales to customers. These sales taxes:

A) should appear on Northern's income statement as an expense.
B) are based upon a company's gross profit in most states.
C) are long-term liabilities when they have been paid.
D) are collected by Northern's as an agent for the state's taxing authority.