On March 1, Warwick’s Co., a women’s clothing store, purchased $72,900 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. On March 5, Warwick’s returned $8,200 of the merchandise, receiving a credit memo, and then paid the amount due on March 9, within the discount period. Journalize Warwick’s entries to record (a) the purchase, (b) the merchandise return, and (c) the payment. Refer to the Chart of Accounts for exact wording of account titles.
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Prairie, inc. produces one single product. it has an annual capacity of 10,000 units, but currently uses only 80% of it. each unit is sold for $50 and requires direct material worth $30 and direct labor worth $5. manufacturing overhead cost is $10 per unit of which 70% is variable. should a special order to sell 1,000 units at $44 be accepted? yes no
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On March 1, Warwick’s Co., a women’s clothing store, purchased $72,900 of merchandise from a supplie...
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