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A Company Receives $95 for Merchandise Sold to a Consumer

Question 89

Multiple Choice

A company receives $95 for merchandise sold to a consumer of which $5 is for sales tax.The $5 of sales tax:


A) increases sales revenue.
B) increases current liabilities.
C) increases selling expenses.
D) is not recorded until it is forwarded to the state government.

Correct Answer:

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