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1. Sparrow Corporation uses the perpetual inventory system: 7-1: Sparrow purchases a diamond bracelet from DeBeers on account for $50,000. The payment terms are
1. Sparrow Corporation uses the perpetual inventory system: 7-1: Sparrow purchases a diamond bracelet from DeBeers on account for $50,000. The payment terms are 2/10N/30. The shipping terms are FOB shipping point. 7-2: Sparrow pays the delivery charges in cash, $500. 7-5: Sparrow pays the DeBeers bill in cash. 7-10: Bella Barnes buys the bracelet for $70,000, cash Required: Prepare the appropriate journal entries and post them to the ledger.
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Survey of Accounting
Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor
4th edition
77862376, 978-0077862374
