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On August 1, 2011, Delta Inc. purchased $20,000 of merchandise on account. On the same day, Delta paid freight of $1,200. The credit terms were 2/10, n/30. On August 3rd, Delta determined that $1,000 of the goods were defective and returned them to the seller. Delta paid the balance due on August 9th.
1. Prepare all of Delta's journal entries for the above transactions. Delta uses a periodic inventory system.
2. Calculate Delta's net purchases.
Make the journal entry necessary on Plitt's books to record the factoring of the accounts.
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