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Question: Two competing travel agencies provide similar services, but they record sales using different methods.
1. Eastern Travel records sales and sales tax in separate accounts. For the month of January, cash sales total $20,000, and sales tax is $1,600.
2. Western Travel records sales and sales tax together. For the month of January, cash sales total $10,800, including an 8% sales tax.
Required: Record cash sales and the related sales tax for
(1) Eastern Travel and
(2) Western Travel.
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