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Question - Reem company sells goods that have a cost of $300,000 to Sama company for $850,000, with payment due in 1 year. The cash price for these goods is $720,000, with payment due in 30 days. If Sama's company paid immediately upon delivery, it would receive a cash discount of $20,000.
Required -
A) Prepare the journal entry to record this transaction at the date of sale (show the calculation).
B) How much revenue should Reem report for the entire year.
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