Sales revenue will be recorded at $4,000 and yang Yang would be required to Recognize sales tax liability of $360.
What is sales revenue?
The terms revenue and sales revenue are sometimes used synonymously.
However, the concept of revenue includes income derived from sources other than those directly connected to the primary business, such as interest on savings or money distributed as dividends.
Revenue comprises income derived from the sale of goods and services. The classification of this is "non-operating income."
Sales = $4,000
State sales tax rate = 9%
State sales tax = Sales x State sales tax rate
= 4,000 x 9%
= $360
Sales revenue will be recorded at $4,000 and sales revenue is not affected by the sales tax amount.
Hence, Yang would be required to Recognize sales tax liability of $360.
