a. During Year 6, ECU Corporation receives $535,000 CASH from customers equal to the selling price of goods plus sales tax. The total SALES REVENUE is equal to $500,000. The amount of the SALES TAX PAYABLE is equal to 7% of the selling price. Phrase Account Category Affect Dr. or Cr. 1st: AL SERE contra - Dr Cr 2nd: AL SERE contra - Dr Cr 3rd: AL SERE contra Dr Cr Date Accounts Debit Credit b. During Year 6 ECU Corporation receives $535,000 CASH from customers equal to the selling price of goods plus sales tax, all of which is also initially recorded to SALES REVENUE. The amount of the SALES TAX PAYABLE is equal to 7% of the selling price,/ also the amount by which SALES REVENUE is reduced. Calculation of SALES TAX PAYABLE = Cash collected - (CASH collected / (1 + sales tax rate)) $ = $ -($ /(1+ Phrase 1st: 2nd: 3rd: Account Category Affect Dr. or Cr. AL SERE contra - Dr Cr AL SERE contra - Dr Cr AL SERE contra - Dr Cr 4th: AL SERE contra - Dr Cr Date Accounts Debit Credit