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Explain Question 03: The following is the series of transactions between the Solar Company and the Eastern Company. Jan 10: Solar Company sold Eastern Company

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Explain Question 03: The following is the series of transactions between the Solar Company and the Eastern Company. Jan 10: Solar Company sold Eastern Company 50 units of refrigerators on accounting terms 1/15, n 30. The refrigerators in the records of Solar Company was 50 per unit and sold it at 70 per unit. Jan 12: the transportation charge 100 charges for the delivery of these refrigerators. The charges were split equally between the buyer and the seller. Jan 17: Easter Company returned 10 units of refrigerators to the Solar Company due to wrong articles. Jan 20: Eastern Company paid the amount due to Solar Company within the discounted period. Both the companies uses the perpetual inventory system. Required: a. Record the series of transaction in the record of Solar Company. ( using the gross invoice method) b. Record the series of transaction in the record of Eastern Company. ( using the net method)

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