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Question
01/10: Solid Construction has recently been awarded a large new job and its purchasing agent negotiates a volume discount on the purchase of 20,000 bd. ft. Solid will pay $1.50/bf. ft. Solid charges the amount to its account.
01/17: Beacon receives a check from Solid in full payment of its Jan 10 purchase.
01/17: The Beacon Office Manager meets with a representative of the BWLC to discuss the defective lumber which Beacon had purchased from BWLC and sold to Solid Construction. BWLC agrees to a Purchase Return and Allowance of $112.50. BWLC will to apply this to purchases made in January.
01/17: Beacon mails a check to BWLC to pay the balance due on its purchase of 20,000 bd. ft.
01/20: Beacon purchases 100 bd ft. of Purple Heart, an exotic rain forest hardwood. Beacon's cost is $6.00 bd ft. and in addition, it pays a $35 shipping charge. Beacon writes two checks for this purchase.
What are the journal entries?
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