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Capitol Chimney Co. had sales on account of $30,500 which were subject to state sales tax of 8 %. The entry to record the sal
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Correct answer---------(B) debit accounts receivable $32940, credit sales revenue $30500 credit sales tax payable $2440.

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Sales tax amount is paid by the customer and then deposited to the government by the seller. This sales tax is recorded as liability until paid to the government.

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