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Question - Butler Company uses the gross method to account for purchase discounts and the periodic inventory system. October9 Purchased goods from Cooper Company on account, $15,000, terms 2/10, n/30. October15 Returned merchandise to Cooper Company that was previously purchased on account, $2,200. October16 Paid the amount due to Cooper Company.
Required - Journalize Butler Company's transactions on October 9, October 15, and October 16.
Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total variable expenses were $240,000, and fixed expenses were $45,000.
Prepare the income tax section of the 2017 income statement beginning with the line "Operating loss before income taxes."
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