The state sales tax (5%) on sales of merchandise will be recorded on Bryne's general ledger as a liability.
What is a sales tax?
This is an imposed taxation that is based on the purchased price of products.
In United states, the sales tax varies from state to state because every state determines its rates unlike the general federal tax rate.
In conclusion, the sales tax on sales of merchandise will be recorded on as a liability because it is an outflow on his personal account.
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