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Question - Two different companies, MI and DSC, entered into the following inventory transactions during December. Both companies use a perpetual inventory system.
December 5 - MI sold inventory on account to DSC for $360,000, terms 3/10, n/30. This inventory originally cost MI $234,000.
December 8 - DSC returned inventory to MI for a credit of $40,000. MI returned this inventory to inventory at its original cost of $26,000.
December 13 - DSC paid MI for the amount owed.
Required - Prepare the journal entries to record these transactions on the books of MI.
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