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Because Donna has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of

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Because Donna has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Pharoah Supply Co. has approached Donna to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately $920, and Donna plans to sell each for $1,840. Donna comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. In the end, Donna decides to use the perpetual irventory system. The following transactions occurred during the month of January. Jan. 4 Bought five mixers on account from Pharoah Supply Co. for $4,600. FOB shipping point, terms n/30. 6 Paid $160 freight on the January 4 purchase. 7 Returned one of the mixers to Pharoah because it was damaged during shipping. Pharoah issues Cookie Creations credit for the cost of mixer plus $32 for the cost of freight that was paid on January 6 for one mixer. 9. Bought four mixers on account from Pharoah Supply Co. for $3,680, FOB shipping point, terms n/30. 10 Donna is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $1,600 cash in Cookie Creations. 12 Paid $128 freight on the January 9 purchase. 17 Donna issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $90 owed at December 31, 2022. (Donna's assistant earns $7 an hour.) 20 Paid a $232 cell phone bill (\$120 for the December 2022 account payable and $112 for the month of January), (Recall that the cell phone is used only for business purposes.) 21 Paid Pharoah the amount due from the January 4 purchase. Date Account Titles and Explanation Debit Credit

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