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A company sells merchandise on account for $350 that is subject to a sales tax...

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Accounting

A company sells merchandise on account for $350 that is subject to a sales tax of 5%. Which of the following is true?

Accounts receivable and Sales revenue are both increased by $378

Accounts receivable and Sales revenue are both increased by $322

Accounts receivable is increased by $378, Sales revenue is increased by $350, and Sales tax payable is increased by $28

Cash is increased by $378 and Sales tax payable is increased by $28

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