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Good question! APA addresses this on p. 178 of the Manual, under Secondary Sources. As you know, you cite the article you have in hand.
Suppose you are reading an article written by Jones. In the article Jones cites the work of Smith. You really need to include Smith's work in your paper, but you can't get your hands on Smith's original article. The correct format for the in-text citation is: Smith (as cited in Jones, 2005) found that 99.3% of children surveyed prefer snow days to school days.
The reference entry would be for Jones.
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