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DeanSport sells hockey equipment. This merchandising business uses a perpetual inventory system.
REQUIRED:
Question 1: Prepare journal entries for the following transactions for July 2020. Explanations are not required. If there is no entry required, write "no entry required".
July 5 Purchased hockey sticks at a total cost of $7,800 on account. The terms of the purchase were 2/10, n/30, FOB shipping point.
July 8 The correct business paid shipping costs of $425 in cash.
July 9 Returned hockey sticks costing $1,400 because they were defective.
July 11 Paid the full amount owing.
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