Assume that Company A buys $1,500 of merchandise from Company B for cash. The merchandise originally cost

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Assume that Company A buys $1,500 of merchandise from Company B for cash. The merchandise originally cost Company B $1,000. What entries should the buyer and seller make, and what is the relationship of the accounts for this transaction?

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 30, 2011 03:24 AM

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Assume that Company A buys $1,500 of merchandise from Company B for cash. The merchandise originally cost

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The journal entries of the two parties would be as follows Seller Cash 1500 Sales ...View the full answer

Accounting concepts and applications

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