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Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system.
Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system.
Nov. | 5 | Purchased 1,450 units of product at a cost of $40 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November 5. | ||
Nov. | 7 | Returned 30 defective units from the November 5 purchase and received full credit. | ||
Nov. | 15 | Paid the amount due from the November 5 purchase, minus the return on November 7. |
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