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4. Flash Brothers sells merchandise for $85,000 cash on July 31 (cost of merchandise is $42,000). The sales tax law requires Flash Brothers to collect
4. Flash Brothers sells merchandise for $85,000 cash on July 31 (cost of merchandise is $42,000). The sales tax law requires Flash Brothers to collect 10% sales tax on every dollar of merchandise sold. Points 5 A. Record the entry for the sale and its applicable sales tax.(Assume the company uses the perpetual inventory method to keep track of inventory)
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