The following selected transactions relate to liabilities of Interstate Farm Implements for December 2018. Inter-state’s fiscal year ends on December 31.

1. On December 15, received $7,500 from Bradley Farms toward the purchase of a $98,000 tractor to be deliv-ered on January 6, 2019.

2. During December, received $25,500 of refundable deposits relating to containers used to transport equipment parts.

3. During December, credit sales totaled $800,000. 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).

Required:

Prepare the appropriate journal entries for these transactions