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Question - On April 12, 2018, Maxiant Corporation sold six machines to Highland Company for $25,000, under the terms 2/10, n/30. On April 20th, Highland paid off half of its receivable balance. On April 30th, the remainder of the account balance was paid.
Required -
a) Prepare the journal entries to record the sale and subsequent payments assuming Maxiant Corporation uses the gross method of accounting for receivables.
b) Prepare the journal entries to record the sale and subsequent payments assuming Maxiant Corporation uses the net method of accounting for receivables.
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