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In: Accounting

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events...

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows:

June 3 Purchased goods for $4,900 from Diamond Inc. with terms 3/10, n/30.
5 Returned goods costing $1,500 to Diamond Inc. for credit on account.
6 Purchased goods from Club Corp. for $1,400 with terms 3/10, n/30.
11 Paid the balance owed to Diamond Inc.
22 Paid Club Corp. in full.

Required:

Assume Ace records discounts using the gross method in a perpetual inventory system. Prepare the journal entries to record each of the payment transactions.

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Expert Solution


ekkarill92 answered 2 years ago
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