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Question: Llamas Co. sold goods with an invoice price of P5,400,000 on January 1, 2020. Trade discounts were 20% and 10%. Terms were 5/15, n/45. Customer made a down payment equal to 30% of the list price. The remaining balance was paid on January 31, 2020. Llamas uses the net method.
- How much were total trade discounts?
- How much is recorded by Llamas Co. to Sales on January 1, 2020?
- How much accounts receivable was recorded on January 1, 2020?
- How much was recorded to Purchase Discounts Lost on January 31, 2020?
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