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Buffalo Engineering Corporation purchased conveyor equipment with a list price of $10,700. Presented below are three independent cases related to the equipment. (a) Buffalo paid

Buffalo Engineering Corporation purchased conveyor equipment with a list price of $10,700. Presented below are three independent cases related to the equipment.

(a) Buffalo paid cash for the equipment 8 days after the purchase. The vendors credit terms are 2/10, n/30. Assume that equipment purchases are initially recorded gross.
(b) Buffalo traded in equipment with a book value of $1,800 (initial cost $7,500), and paid $9,000 in cash one month after the purchase. The old equipment could have been sold for $400 at the date of trade. (The exchange has commercial substance.)
(c) Buffalo gave the vendor a $11,100 zero-interest-bearing note for the equipment on the date of purchase. The note was due in one year and was paid on time. Assume that the effective-interest rate in the market was 9%.

Prepare the general journal entries required to record the acquisition and payment in each of the independent cases above.

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