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On October 1, Your Company sold merchandise in the amount of $10,000, with credit terms of 2/10, n/30. The cost of the items sold is
On October 1, Your Company sold merchandise in the amount of $10,000, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Your Company uses the perpetual inventory system. You received payment on October 16. Give the journal entry that records the October 16 transaction. Cash 9,800 Sales discount 200 Accounts receivable 10,000 Accounts receivable 10,000 Cash 9,800 Sales discount 200 Cash 10,000 Accounts receivable 10,000 Cash 9,800 Accounts receivable 9,800 Cash 10,000 Retained earnings 10,000
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