A customer of J and J purchased $2 million dollars ofmerchandise on account. J...

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Accounting

A customer of J and J purchased $2 million dollars ofmerchandise on account. J & J Products gives terms of 2%, 10days, net 30. J& J Products believes that the customer willtake the discount if is equal to at least an 16% return. J & JProducts uses the net method to record sales. Assume a 360-dayyear.
Required:
a. How percentage return will be earned by the customer if theymake the payment within the discount period?
b. Make the entries on J & J’s books assuming the customerpays within the discount period.
c. Make the entries on J & J’s books assuming the customerdoes not pay within the discount period.
d. Make the entries on the customer’s books assuming they payedwithin the discount period.
e. Make the entries on the customer’s books assuming they failedto pay within the discount period.

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a If Customer make the payment within the discount period of 10days they will earn a return of 2 In the books of J js b If customer pays within the discount period Debit Credit Cash 196000000 To See Answer

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In: AccountingA customer of J and J purchased $2 million dollars ofmerchandise on account. J &...A customer of J and J purchased $2 million dollars ofmerchandise on account. J & J Products gives terms of 2%, 10days, net 30. J& J Products believes that the customer willtake the discount if is equal to at least an 16% return. J & JProducts uses the net method to record sales. Assume a 360-dayyear.Required:a. How percentage return will be earned by the customer if theymake the payment within the discount period?b. Make the entries on J & J’s books assuming the customerpays within the discount period.c. Make the entries on J & J’s books assuming the customerdoes not pay within the discount period.d. Make the entries on the customer’s books assuming they payedwithin the discount period.e. Make the entries on the customer’s books assuming they failedto pay within the discount period.