Be prepared to show how to record the journal entries for the following transactions and...
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Accounting
Be prepared to show how to record the journal entries for the following transactions and explain how they were prepared.
a) XYZ Co. sold merchandise to a customer for $1,000 less a trade discount of $100. The credit terms for the sale were 2/10 net/30. They use the gross method for cash discounts.
b) Five days after the sale, the customer returns 10% of the shipment.
c) Seven days after the sale, XYZ draws up a financial statement and estimates that there will be an additional return of 5% of the shipment.
d) Ten days after the sale, the customer pays the balance due less the 10% cash discount.
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