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Problem - Sales tax - A sale of merchandise on account for $36,000 is subject to an 8% sales tax.
(a) Should the sales tax be recorded at the time of sale or when payment is received?
(b) What is the amount credited to Sales?
(c) What is the amount debited to Accounts Receivable?
(d) What is the account to which the $2,880 ($36,000 × 8%) is credited?
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