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Problem - Repurchase Agreement
Zagat Ltd. enters into an agreement on March 1, 2019, to sell Werner Metal aluminum ingots. As part of the agreement, Zagat also agrees to repurchase the ingots on May 1, 2019, at the original sales price of €200,000 plus 2%.
Required -
a. Prepare Zagat's journal entry necessary on March 1, 2019.
b. Prepare Zagat's journal entry for the repurchase of the ingots on May 1, 2019.
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