The following selected transactions relate to liabilities of Interstate Farm Equipment Company for December 2024. Interstates fiscal year ends on December 31. Required:

Prepare the appropriate journal entries for these transactions. On December 15, received $8,500 from Bradley Farms toward the sale by Interstate of a $110,500 tractor to be delivered to Bradley on January 6, 2025.

During December, received $33,500 of refundable deposits relating to containers used to transport equipment parts.

During December, credit sales totaled $976,000. The state sales tax rate is 5% and the local sales tax rate is 2%. (This is a summary journal entry for the many individual sales transactions for the period.)