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Prepare Journals Entries for the Following Assuming the Company Uses

Question 107

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Prepare journals entries for the following assuming the company uses a perpetual inventory method and records purchases at their net amounts.
1 June  Purchased goods from Martin Company for $900 with the terms of 2/10,1/302 Returned $100 of the goods to Martin Company 4 Purchased goods from Elizabeth Company for $700 with the terms of 3/10,n/306 Paid the amount owed to Martin Company 8 Returned $50 of the goods purchased from Elizabeth Company 12 Sold all the goods on hand from Martin Company for $1,060 and  collected 8% sales tax in addition to the sales price 16 Paid the amount owed to Elizabeth Company in full \begin{array}{|l|l|}\hline 1 \text { June } & \begin{array}{l}\text { Purchased goods from Martin Company for } \$ 900 \text { with the terms of } \\2 / 10,1 / 30\end{array} \\\hline 2 & \text { Returned } \$ 100 \text { of the goods to Martin Company } \\\hline 4 & \begin{array}{l}\text { Purchased goods from Elizabeth Company for } \$ 700 \text { with the terms of } \\3 / 10, \mathrm{n} / 30\end{array} \\\hline 6 & \text { Paid the amount owed to Martin Company } \\\hline 8 & \begin{array}{l}\text { Returned } \$ 50 \text { of the goods purchased from Elizabeth Company } \\\end{array} \\\hline 12& \begin{array}{l}\text { Sold all the goods on hand from Martin Company for } \$ 1,060 \text { and }\\\text { collected } 8 \% \text { sales tax in addition to the sales price }\end{array} \\\hline 16 & \text { Paid the amount owed to Elizabeth Company in full }\\\hline\end{array}

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