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Is the sales tax on merchandise purchased for resale included in inventory?

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Question added by Rana Alnajjar , Web developer , Lebcards
Date Posted: 2016/12/19
Nazmul Islam CMA
by Nazmul Islam CMA , Manager , Robi Axiatal Ltd.

I think the answer is yes........

manseer muhammed ali
by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

In our state, sales tax is paid only by the end customer. In other words, a retailer does not pay sales tax on merchandise that is purchased for resale. ... If the merchandise has not been sold, the entire cost will be reported as inventory, a current asset on the balance sheet.

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