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Question - Sale of merchandise: trade discount-perpetual
As a co-op student, you are working as an accounts receivable clerk at Asian Foods. The controller asks you to record a customer payment from Liu and Li Co. The sales invoice is dated October 1, 2017 for $3,000 of tea and tapioca pearls. The payment terms are 4/20, n/60.
1. Determine the beginning and end date of the discount period.
2. Calculate the discount amount available.
3. If today is October 20, record the journal entry.
4. If today is October 23, record the journal entry.
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