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Velasquez Company has the following selected transactions during March.
Mar. 2 Purchased equipment costing $9,400 from Chang Company on account.
5 Received credit of $410 from Lyden Company for merchandise damaged in shipment to Velasquez.
7 Issued credit of $400 to Higley Company for merchandise the customer returned.
The returned merchandise had a cost of $260.
Velasquez Company uses a one-column purchases journal, a sales journal, the columnar cash journals used in the text, and a general journal.
Instructions
(a) Journalize the transactions in the general journal.
(b) In a brief memo to the president of Velasquez Company, explain the postings to the control and subsidiary accounts from each type of journal.
What is true cash value?
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