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PROBLEM: 1. Easy Motor Company makes sales on which an 8% sales tax is assessed. The following summary transactions were made during 2020: a. Cash

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PROBLEM: 1. Easy Motor Company makes sales on which an 8% sales tax is assessed. The following summary transactions were made during 2020: a. Cash sales of $900,000, excluding sales taxes b. Credit sales of $2,150,000, including sales taxes c. Sales taxes of $250,000 were paid to the state Required: Prepare journal entries to record the preceding transactions. (Round to the nearest whole number.)

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