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)) Phrase $ = $ Account /(1+ Category Affect Dr. or Cr. 1st: AL SERE contra + - Dr Cr 2nd: AL SERE contra + Dr Cr 3rd: AL SERE contra + Dr Cri 4th: AL SE RE contra + Dr Cr Date Accounts Debit Credit