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Assume that a firm is offered 2/10 net 30, indicating that if the account is settled in 10 days, the firm may keep a discount of 2%. If the discount is not taken, then the full amount is payable in 30 days.
Required:
Question 1: Calculate the cost of foregoing the discount.
Question 2: Differentiate between the various aims of appraising projects.
Prepare the journal entries to create and close the warranty period for the contingent liability due to sales from February.
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