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Buffalo Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1 , (1) Buffalo purchased $37,000
Buffalo Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1 , (1) Buffalo purchased $37,000 of inventory, terms 1/10,n/30, FOB shipping point. (2) Buffalo paid freight costs of $1,190. (b) On July 3, Buffalo returned damaged goods and received credit of $3,700. (c) On July 10 , Buffalo paid for the goods. Prepare all necessary journal entries for Buffalo. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)
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