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Simmons Company purchased merchandise from Crystal Inc. with an invoice price of $168,000 and credit terms...

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Simmons Company purchased merchandise from Crystal Inc. with an invoice price of $168,000 and credit terms of 2/15, n/30. The merchandise had cost Crystal, Inc. an amount of $140,000. Simmons Company paid within the discount period. Assume that both the buyer and seller use the perpetual inventory system. REQUIRED: Prepare journal entries for BOTH the buyer and the seller for the purchase/sale and for the cash payment/collection. Simmons Company purchased merchandise from Crystal Inc. with an invoice price of $168,000 and credit terms of 2/15, n/30. The merchandise had cost Crystal, Inc. an amount of $140,000. Simmons Company paid within the discount period. Assume that both the buyer and seller use the perpetual inventory system. REQUIRED: Prepare journal entries for BOTH the buyer and the seller for the purchase/sale and for the cash payment/collection.

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Intermediate Accounting

Intermediate Accounting

ISBN: 978-0176509736

10th Canadian Edition, Volume 1

Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,

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