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VII. On May 31, a company had a balance in its accounts receivable of $103,200. Assume the company uses a perpetual inventory system. In
VII. On May 31, a company had a balance in its accounts receivable of $103,200. Assume the company uses a perpetual inventory system. In June, the following transactions occurred: (10%) June 2 Sold merchandise on account, $12,000. The cost of the merchandise was $7,200. June 8 Sold $15,000 worth of accounts receivable to First Bank. First Bank charged a 4% factoring fee. June 20 Borrowed $30,000 cash from Second National Bank, pledging $31,500 worth of accounts receivable as collateral for the loan. Required: Prepare the general journal entries to record these transactions for June.
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