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    Journalize Transactions

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    Prior Company buys merchandise on account from Wood Company. The selling price of the goods is $900 and the cost of the goods sold is $630. Both companies use perpetual inventory systems.

    How would you journalize the transactions on the books of both companies?

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    Solution Preview

    Journal Entry in books of Prior Company

    Debit Merchandise Inventory : $900
    Credit Accounts Payable: $900
    (for ...

    Solution Summary

    The expert examines journalize transactions.