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Simmons Company purchased merchandise from Crystal Inc. with an invoice price of $168,000 and credit terms of 2/15, n/30. The merchandise had cost Crystal, Inc. an amount of $140,000. Simmons Company paid within the discount period. Assume that both the buyer and seller use the perpetual inventory system.
REQUIRED:
Problem 1: Prepare journal entries for BOTH the buyer and the seller for the purchase/sale and for the cash payment/collection.
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