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1. On December 3, Solarte Company sold $490,100 of merchandise to Rooney Co., terms 2/10, n/30. The cost of the merchandise sold was $313,100. 2.
1. | On December 3, Solarte Company sold $490,100 of merchandise to Rooney Co., terms 2/10, n/30. The cost of the merchandise sold was $313,100. | |
2. | On December 8, Rooney Co. was granted an allowance of $25,000 for merchandise purchased on December 3. | |
3. | On December 13, Solarte Company received the balance due from Rooney Co. |
(a) | Prepare the journal entries to record these transactions on the books of Solarte Company. Solarte uses a perpetual inventory system. | |
(b) | Assume that Solarte Company received the balance due from Rooney Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. |
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