Generally, sales tax revenues should be recognized by a local government in the period

a. in which the local government receives the cash.

b. that the underlying sale occurs, whether or not the local government receives the cash in that period.

c. in which the state—which collects all sales taxes in the state—receives the cash from the collecting merchants.

d. in which the state—which collects all sales taxes in the state—receives the cash from the collecting merchants if the local government collects the taxes from the state in that period or soon enough in the next period to be used as a resource for payment of liabilities incurred in the first period.