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Question - The following selected transactions apply to Topeca Supply for November and December 2018. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month.
1. Cash sales for November 2018 were $64,500 plus sales tax of 9 percent.
2. Topeca Supply paid the November sales tax to the state agency on December 10, 2018.
3. Cash sales for December 2018 were $83,000 plus sales tax of 9 percent.
What is the amount of the sales tax liability as of December 31, 2018?
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