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Using the information in E6-7, prepare journal entries to record the transactions, assuming Axe uses a perpetual inventory system.
Info E6-7
Jan. 6 Purchased goods for $ 1,200 from Green with terms 2/10, n/30.
6 Purchased goods from Munoz for $ 900 with terms 2/10, n/30.
14 Paid Green in full.
Feb. 2 Paid Munoz in full.
28 Purchased goods for $ 350 from Reynolds with terms 2/10, n/45.
Assume that Inventive's tax rate for 2011 is 40 percent. What is the current portion of Inventive's total income tax expense for 2011?
What is the recognized gain or loss from the sale of each parcel?
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Record the foregoing transactions of the seller in the sequence indicated below. Sold the merchandise, recognizing the sale and cost of merchandise sold.
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