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  3. 5. consider the following situations and determine

5. Consider the following situations and determine (1) which type of liability should be recognized...

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Accounting

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5. Consider the following situations and determine (1) which type of liability should be recognized (specific account), and (2) how much should be recognized in the current period (year) a. A business sets up a line of credit with a supplier. The company purchases $10,000 worth of equipment on credit. Terms of purchase are 5/10, 1/30. b. A customer purchases a watering hose for $25. The sales tax rate is 5%. c. Customers pay in advance for season tickets to a soccer game. There are fourteen customers, each paying $250 per season ticket. Each customer purchased two season tickets. d. A company issues 2,000 shares of its common stock with a price per share of $15

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