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Read Each of the Following Transactions

Question 70

Essay

Read each of the following transactions. Determine the accounts to be debited and credited.
A)Collected cash in settlement of a $600 promissory note plus interest of $18.
B)Jaime Gomez, the owner, made an additional cash investment of $11,000.
C)Sold merchandise for $3,000 in cash plus sales tax of $210. There was a cash overage of $4.

Correct Answer:

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A) DEBIT CASH; CREDIT NOTES RE...

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