Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms 2/10, n/30. The
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Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms 2/10, n/30. The cost of the merchandise sold is $51,600. Steritech Co. issues a credit memorandum for $5,000 ($4,900 net of the 2% discount) for merchandise that was damaged in shipment. Butler Co. agreed to keep the damaged merchandiise. Illustrate the effects on the accounts and financial statements of Steritech Co. for
(a) The sale, including the cost of the merchandise sold,
(b) The credit memorandum
(c) The receipt of the check for the amount due from Butler Co.
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a b c Accts Rec 84280 No effect Assets Statement ...View the full answer
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