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Prepare the Necessary Journal Entries on the Books of Magic

Question 199

Essay

Prepare the necessary journal entries on the books of Magic Carpet Company to record the following transactions assuming a perpetual inventory system (you may omit explanations):
(a) Magic purchased $49000 of merchandise on account terms 2/10 n/30.
(b) Returned $4000 of damaged merchandise for credit.
(c) Paid for the merchandise purchased within 10 days.

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