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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:You sell $1 million of microprocessors to one of your customers on account. After opening the boxes that you sent, your
customer discovers that many of the microprocessors are damaged, so you offer them a partial refund of 10%. The next day
they pay their remaining balance in full.
Which is part of the correct journal entry that you should record at the time that the customer makes their payment?
DEBIT to Cash of $100,000
CREDIT to Accounts Receivable of $900,000
CREDIT to Accounts Payable of $900,000
CREDIT to Accounts Receivable of $1,000,000
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