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Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the
Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smith's sales account for May has a credit balance of $540,000. Required: Prepare the sales tax adjusting journal entry for the end of May
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