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ECW, Inc. just paid McDonald's a Franchise fee so ECW can open a restaurant. ECW just purchased a new machine that makes milk. shakes. The
ECW, Inc. just paid McDonald's a Franchise fee so ECW can open a restaurant. ECW just purchased a new machine that makes milk. shakes. The equipment cost $75,000. In addition, ECW had to pay $5,000 for sales tax on the equipment. In addition, ECW had to pay an electrician $2,000 to put a new electrical outlet in the store specifically for the new equipment. Based on this information, ECW will debit which of the following accounts: Equipment will be debited for $77,000. Sales Tax Expense will be debited for $5,000. Equipment will be debited for $82,000: Sales Tax Expense will be debited for $5,000; and Electrical Expense will be debited for $2,000. Equipment will be debited for $80,000; Electrical Expense will be debited for $2,000. Equipment will be debited for $75,000; Sales Tax Expense will be debited for $5,000; Electrical Expense will be debited for $2,000. Equipment will be debited for $82,000
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