Business is registered for sales tax and the rate of sales tax is 20%.
In August 20X7 a company sold goods at standard sales tax rate with a net value of 10,000.
The net purchases in August 20X7, which were all subject to sales tax, were 24,000 on the sales tax control account. Payments of $18,000 were made to the tax authorities during the period.
What is the closing liability on the sales tax account at the end of the period?