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Peet Company Uses a Voucher System and the Periodic Inventory

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Essay

Peet Company uses a voucher system and the periodic inventory method. The following transactions were completed:
May 3 Purchased $7,000 of merchandise; terms 2/10, n/30.
Prepared voucher #205.
May 13 Paid voucher #205.
Required: Prepare journal entries to record the above transactions. Assume Peet Company uses the gross method for recording purchases. Omit explanations.


Definitions:

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