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Analyzing Financial Results of Merchandising Transactions Under the Gross and Net Methods Aug. 12...

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Accounting

Analyzing Financial Results of Merchandising Transactions Under the Gross and Net Methods
Aug. 12 Sales of $200,000 of merchandise to Crescendo.
Aug. 17 Returns and allowances of $30,000(gross) are granted Crescendo.
Aug. 19 Espresso collects $115,200 cash from Crescendo on its account.
Aug. 24 Returns and allowances of $24,000(gross) are granted Crescendo on items not yet paid for:
Aug. 27 Remainder of the Crescendo account is collected in full.
Sep. 12 Returns and allowances of $10,000 cash (gross) are granted Crescendo on merchandise paid for on August 19.
Sep. 14 Returns and allowances of $10,000 cash (gross) are granted Crescendo on merchandise paid for on August 27.
Gross Method Net Method Reporting Under the Gross and Net Method
a. Prepare Espresso's journal entries (ignoring cost of goods sold) for the following transactions under the gross method.
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