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Gordon's Grocers purchases bread from Buddy's Bread Company at $1.40 per loat. Gordon's recently engaged in a customer service contract with Buddy's to purchase 123,
Gordon's Grocers purchases bread from Buddy's Bread Company at $1.40 per loat. Gordon's recently engaged in a customer service contract with Buddy's to purchase 123, 000 loaves of Buddy's bread. Buddy offered credit to Gordon's at terms of 3/15, n/45. Buddy expects Gondon to pay within the discount period. Required: If an amount box does not require an entry, leave it blank. Prepare the journal entry to record the sale using the net method. Hint: In calculating your answer, use one minus the discount rate (eg. 10.02=.98 ) Thear uy wok For customers expected to take the discoult, sales revenue should be recorded at the net amount; For customers expected to fail to pay in the discount period, sales revenue should be recorded at the gross amount. Then, prepare the journal entry assuming the payment is mode within 10 days (within the discount period)
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