Determine and journalize the transactions for perez company

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Question 1: Journalize the transactions for Perez Company using the gross method of accounting for sales discounts. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction.

Point 1: October 3 Sold goods costing $8,700 to Brown Company on account, $14,500, terms 5/10, n/30.

Point 2: October 9 Brown Company was granted an allowance of $2,900 for returned merchandise that was previously purchased on account. The returned goods are damaged and have no scrap value.

Point 3: October 14 Received the amount due from Brown Company.

Reference no: EM132474172

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