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Prepare the Necessary Journal Entries to Record the Following Transactions

question 32

Essay

Prepare the necessary journal entries to record the following transactions, assuming Darby Company uses a perpetual inventory system.
(a) Darby sells $55,000 of merchandise, terms 1/10, n/30. The merchandise cost $30,000.
(b) The customer in (a) returned $5,000 of merchandise to Darby. The merchandise returned cost $3,000.
(c) Darby received the balance due within the discount period.


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