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begin{tabular}{lrlr} & multicolumn{1}{c}{ Debits } & & multicolumn{1}{c}{ Credits } cline { 2 } cline { 4 } Cash & $19,400 & Accumulated Depreciation-Equipment

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\begin{tabular}{lrlr} & \multicolumn{1}{c}{ Debits } & & \multicolumn{1}{c}{ Credits } \\ \cline { 2 } \cline { 4 } Cash & $19,400 & Accumulated Depreciation-Equipment & $3,470 \\ Notes Receivable & 2,160 & Accounts Payable & 6,320 \\ Accounts Receivable & 7,550 & Common Stock & 47,500 \\ Inventory & 16,100 & Retained Earnings & 19,590 \\ Prepaid Insurance & 1,870 & & \\ Equipment & 29,800 & & \\ & $76,880 & & $76,880 \\ & = & \end{tabular} During December, the company completed the following transactions. Dec. 7 Received $3,510 cash from customers in payment of account (no discount allowed). 12 Purchased merchandise on account from Green Co. \$12,000, terms 1/10, n/30. 17 Sold merchandise on account $16,000, terms 2/10,n/30. The cost of the merchandise sold was $10,500. 19 Paid salaries $1,990. 22 Paid Green Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 31 Received $2,660 cash from customers in payment of account (no discount allowed). \begin{tabular}{ll|l} Dec. 19 & & Salaries and Wages Expense \end{tabular} 1990 Cash \begin{tabular}{l} 0 \\ \hline \end{tabular} 1990 Dec. 22 Accounts Payable 12000 Cash Dec. 26 Cash Sales Discounts Accounts Receivable 16000

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