DE5-4 You may have shopped at a Gap store. Suppose Gap purchases 2,000 pairs of slacks on

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DE5-4 You may have shopped at a Gap store. Suppose Gap purchases 2,000 pairs of slacks on account for $45.000. Credit terms are 2/10 n/30. As part of this shipment, the supplier. Miralu Products of Hong Kong, shipped $8,000 worth of defective merchandise, which Gap rejected and sent back. Gap then paid the balance within the discount period. Journalize the following transactions for Gap:

a. Purchase of inventory.

b. Return of defective goods.

c. Payment within the discount period.

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Accounting

ISBN: 9780130906991

5th Edition

Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones

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