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The agreed cost of an item to be purchased by a business on credit is $4,000. The applicable cost will be debited to advertising expense.

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The agreed cost of an item to be purchased by a business on credit is $4,000. The applicable cost will be debited to advertising expense. The item is subject to 5% goods and services tax (GST) and 7% provincial sales tax (PST). When this transaction is recorded, what amount will be debited to advertising expense? Multiple Choice O S4,280 $4,480 None of these answers is correct O S4,000

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