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During December, Far West Services makes a $5,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is

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Sales tax payable (combined) = $5,200 * 8.5% = $5,200 * 0.085

Sales tax payable = $442

Total accounts receivable = $5,200 + $442 = $5,642

Accounts receivable account......Debit $5,642

sales revenue account.................credit $5,200

Sales tax payable account...........credit $442

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