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Garth purchased merchandise inventory costing $24,000 with credit terms of 2/10, net 30. Eight days...

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Question

Accounting

Garth purchased merchandise inventory costing $24,000 with credit terms of 2/10, net 30. Eight days after the purchase, Garth paid one-half of the outstanding obligation. The remaining amount was paid 30 days after the date of purchase.

Instructions:

Prepare the journal entries Garth would make for the purchase and the two subsequent payments using:

a. the gross method

b. the net method

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