Corporation specializes in the sale of printing
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....
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
Transcribed Image Text:6. Gross and Net Method. Ace Corporation specializes in the sale of printing
machine. It had the following transactions with one of its suppliers:
Purchases of machines
P3,400,000
Purchase return and allowances
100,000
Purchase discounts taken
34,000
Purchases were made throughout the year on terms 2/10, n/30. All returns
and allowances took place within 7 days of purchase and prior to any payment
on account.
How much is purchase discount lost?
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