On June 16, 2014, ABC sold merchandise toXYZ with a list price of $10,000, tradediscount 20% and 25%, 2/10, n/30. They werereceived by XYZ on the same date. Freightcharges were $600.Under each of the following independentsituations, prepare all relevant journal entrieson the books of (a) ABC and (b) XYZ:a. FOB Shipping Point, freight collect. XYZsettled his account with ABC in full on June24.b. FOB Destination, freight prepaid. XYZsettled his account with ABC in full on June25.c. FOB Shipping Point, freight prepaid. XYZsettled his account with ABC in full on June26.d. FOB Destination, freight collect. XYZ settledhis account with ABC in full on June 24.e. FOB Shipping Point, freight collect. XYZsettled his account with ABC in full on June27.f. FOB Destination, freight collect. XYZ settledhis account with ABC in full on June 28.

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Under each of the following independent situations, prepare all relevant journal entries on the books of (a) ABC and (b) XYZ:

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 3PB

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