Sales tax collected by a retail store when making sales is
A)a miscellaneous revenue for the store.
B)a current liability.
C)not recorded because it is a tax paid by the customer.
D)recorded as an operating expense.

Question

Quizplus · Accepted Answer

Sales tax collected by a retail store is a current liability because it is collected by the store from customers but not yet remitted to the government.

Sales Tax Collected by a Retail Store When Making Sales