5. Consider the following situations and determine (1) which type of liability should be recognized...
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Accounting
5. Consider the following situations and determine (1) which type of liability should be recognized (specific account), and (2) how much should be recognized in the current period (year) a. A business sets up a line of credit with a supplier. The company purchases $10,000 worth of equipment on credit. Terms of purchase are 5/10, 1/30. b. A customer purchases a watering hose for $25. The sales tax rate is 5%. c. Customers pay in advance for season tickets to a soccer game. There are fourteen customers, each paying $250 per season ticket. Each customer purchased two season tickets. d. A company issues 2,000 shares of its common stock with a price per share of $15
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