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The following are selected transactions of Everett, Inc.: Everett sold and shipped on account to Tacoma, Inc, merchandise 10-May for $47,000 (gross margin is 35%),
The following are selected transactions of Everett, Inc.: Everett sold and shipped on account to Tacoma, Inc, merchandise 10-May for $47,000 (gross margin is 35%), terms 1/10, n/30. Hint: you must calculate COGS. Shipping costs of $3,400 were paid. The terms of the sale were 12-May FOB Destination. Tacoma, Inc. returned merchandise billed at $5,300 on May 16, 16-May (gross margin is 35%). Hint: you must calculate COGS. Received a check from Tacoma, Inc. for full settlement of the May 24-May 10 transaction. Record the above transactions in general journal form as they would appear on the books of (a) Everett, Inc. and (b) Tacoma, Inc. Both companies use the perpetual inventory system. Omit explanations for the journal entries. a. Everett's records: (2 points each) Date Account Debit Credit Tacoma's records: (2 points each) Debit Credit Date Account
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