Jupiter Company sells goods to Danone Inc. on account on January 1, 2017. The goods have a

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Jupiter Company sells goods to Danone Inc. on account on January 1, 2017. The goods have a sales price of $610,000 (cost $500,000). The terms of the sale are net 30. If Danone pays within five days, it receives a cash discount of $10,000. Past history indicates the cash discount will be taken.
Instructions
(a) Prepare the journal entries for Jupiter for January 1, 2017.
(b) Prepare the journal entries for Jupiter for January 31, 2017, assuming Danone does not make payment until January 31, 2017.
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Intermediate Accounting

ISBN: 978-1119048534

11th Canadian edition Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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