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Luke Ltd has made $86,500 (VIP) worth of sales during the period. Of these sales, 24,300 are NOT subject to VAT. Luke Ltd also made

Luke Ltd has made $86,500 (VIP) worth of sales during the period. Of these sales, 24,300 are NOT subject to VAT. Luke Ltd also made $94,000 worth of purchases, all of which are subject to VAT. What are the VAT implications for Company A for the period? Prepare the Journal entry to record the VAT implication. (Assume VAT of 9%)

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