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Problem 1: On October 3, Nick Carter, a carpenter, received a cash payment for services previously billed to a client. Nick paid his telephone bill, and he also bought equipment on credit. For the three transactions, at least one of the entries will include a
Option 1: debit to Accounts Receivable
Option 2: credit to Accounts Payable.
Option 3: credit to Notes Payable.
Option 4: credit to Nick Carter, Capital.
What are the current profit margins on both trips? Describe two ways that Take-a-Break Travel could cut its costs to get the profit margin back to their original levels.
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