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During its first month of operations, Purrfect Pets purchased 5,800 bags of dog food at a cost of $3 a bag and sold all 5,800 bags of dog food on account with payment terms of 3/10, n/30 for $12 each. A total of 2,400 of these bags were sold to customers who paid within the discount period; the other customers paid after the discount period had ended. Sales allowances totaling $240 were granted to customers whose dogs did not like the dog food.
Required:
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