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The Eastman Corporation sells merchandise with a list price of $13,000 on February 1, 2007, with terms of 1/10, n/30. On February 10, 2007, payment was received on merchandise originally billed for $7,500, and the balance due was received on February 28, 2007.
Required
Prepare journal entries to record the preceding information using
(1) The gross price method, and
(2) The net price method.
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