The following selected transactions relate to liabilities of Interstate Farm Equipment Company for December 2024. Interstate’s fiscal year ends on December 31.

Required:
Prepare the appropriate journal entries for these transactions.
1. On December 15, received $7,500 from Bradley Farms toward the sale by Interstate of a $98,000 tractor to be delivered to Bradley on January 6, 2025.
2. During December, received $25,500 of refundable deposits relating to containers used to transport equipment parts.
3. During December, credit sales totaled $800,000. The state sales tax rate is 5% and the local sales tax rate is 2%. (This is a summary journal entry for the many individual sales transactions for the period).