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The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 - Petor Ltd. sold goods to Tames Corp. for

The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.

  • Dec. 3 - Petor Ltd. sold goods to Tames Corp. for $68,000, terms 2/10, n/30, FOB shipping point. The inventory had cost Pector $36,000.
  • Dec. 7 - Shipping costs of $900 were paid by the appropriate company.
  • Dec. 8 - Tames returned unwanted merchandise to Pector. The returned merchandise has a sales price of $2,100 and a cost of $1,150. It was restored to inventory.
  • Dec. 11 - Pector received the balance due from Tames.

Instructions

(a) Record the above transactions in the books of Pector.

(b) Record teh above transactions in the books of Tames.

(c) Calculate the gross profit earned by Pector on the above transactions.

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