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sold goods to hari journal entry

Example of a Cost of Goods Sold Journal Entry. However, ABC Ltd. uses the perpetual inventory system, so it needs to record the cost of goods sold at the same time of sale. A: For the journal entry for buying goods you will be able to work out the answer if you go through this tutorial on the journal entry for buying an asset. As a refresher, debits and credits affect accounts in different ways. Sales journal entries should also reflect changes to accounts such as Cost of Goods Sold , Inventory, and Sales Tax Payable accounts. Log in. (iv) Bought goods for cash ₹10,000 (v) Bought goods by cheque ₹15,000 (vi) Sold goods for cheque for ₹20,000 and deposited in Bank on the same day (vii) Paid to Arun by cheque ₹1,900 in full settlement of his account of ₹2,000 (viii) Drew from Bank for office use ₹1,000 26 Pawan A/c. When merchandise purchased on account are returned to supplier, we debit accounts payable account and credit … Received cash from Rehman & Sons Rs. 30,000 on Credit. (vii) Sold goods to Aman at list price of ₹ 30,000 at 10% trade discount against cash. Click here to get an answer to your question ️ journal entry of received from hari gaurav60 gaurav60 19.10.2016 Accountancy Secondary School Journal entry of received from hari 2 See answers nisha37 nisha37 Cash a/c Dr. To Hari's a/c Select the closest type of Cost of Goods Sold that matches your situation from the Detail Type drop-down. Required: Make a journal entry in the books of Y Merchants: to record the purchase of merchandise from Z Traders. ¤ journal entry for sold goods costing 40,000 to Anil for cash at a profit of 25% on cost less 20% trade discount and paid cartage 100 , which are not to be charged from Anil will be; _____ cash a/c Dr 40,000 cartage a/c Dr 100 to sale a/c 40,000 to cash 100 (being good sold to Anil for cash and allowed him free cartage) _____ here; ¤ cash is coming in so, it will be debited. There are now two cost of goods sold journal entries, of which the first is: The first entry was similar to the transaction noted earlier in the simple version, where we eliminated the balance in the purchases account and altered the ending inventory balance to match the costed amount of ending inventory. Sold Goods to Ram for Journal Entries, Sold Goods to Ram Journal Entry, Sold Goods to Shruti for 80000, Sold Goods for Cash Journal Entry. Hari Sales 10,000 June 20 Bought furniture from S.R. An analysis of produced items reveals that 1/3 were sold and 2/3 retained in inventory. Journal Entries - Buying and Selling Goods by: Anonymous What is the journal entry of 1) sold goods to Krishna Bought goods from Rajesh ? Journal Entry for Purchase Returns or Return Outwards Sometimes goods purchased by a business are found unfit for use and may need to be returned to the respective supplier(s). Distributed goods worth Rs. 75% payment is received by cheque on Jan. 23rd. April 4 Sold goods to Ramnath 15,000. Inventory Adjustment : $50 : Inventory Asset : $50: Inventory Adjustment for inventory that was broken in the warehouse . In a dynamic environment, credit sales are promoted to keep up with the cutting edge competition. The actual amount of beginning inventory owned by the company is properly valued and reflects the balances in the various inventory asset accounts in the general ledger. 50 and merchandising worth Rs. (x) Sold goods costing ₹ 10,000 at cost plus 20% less 10% trade discount to Bhupesh. Inventory is goods that are ready for sale and is shown as Assets in the Balance Sheet. Hari Sales, Delhi 12,000 June 13 Paid to Ramavtar 40,000 June 17 Received from M/s. 20: Sold goods to Vishal Traders costing ₹ 40,000 at 25% profit, allowing 10% trade discount and 10% cash discount. In either case, the accountant needs to reduce ending inventory by the amount of those goods that either were shipped to customers or designated as being customer-owned under a bill and hold arrangement. At month-end, it counts its ending inventory and determines that there is $475,000 of inventory on hand. 16: Purchased goods costing ₹ 2,00,000 from Hari & Co. Journal Entry Format Download Solution: And as a contra entry against this, we have to reduce our purchases account (it is purchases for the periodic system of inventory ) or inventory account (for the perpetual system ). In addition, there is $150,000 of overhead to allocate to the items produced during the month. Question 15. If there is a difference between the beginning balance in the general ledger and the actual cost of the beginning inventory, the difference will flush out through the cost of goods sold in the current accounting period. (viii) Sold goods to Pawan at list price of Rs 20,000 at 10% trade discount. Advanced version: ABC International has a beginning balance in its inventory asset account of $1,000,000. 12000. snehuu23 snehuu23 1200.....is correct ans. 50. Following errors are discovered in the books of Sit Ram Lal. Journal Entries and Ledger Question and Answer. The cost of goods sold in a manufacturing business includes direct material, labor cost, product cost, allowances, freight inwards, and factory production overhead. Pass necessary Journal Entry. ; In Trial Balance, only a purchase account is shown with years of the total purchase value, not the cost of goods sold. Follow these steps to arrive at the cost of goods sold journal entry: Verify the beginning inventory balance. Question 9. Raj sold goods costing Rs.50,000 at a profit of 10% to Mohit for cash. to record the returns outwards. Q: What is the journal entry for the following: Received check from a debtor Rs 100,000. Make the necessary entries to rectify them: i. Journal Entry for an Inventory Purchase. Received 80% payment immediately by cheque. Sold goods to Shyam rupees 12000 journal entry Get the answers you need, now! Ask your question. Of cause, the counting may still be done to verify the actual physical count with the accounting records. 4,000 & Telephone Charges Rs. 5,00,000, Nabil Bank Balance Rs. Rs.500 received from K. Krishna was debited to his account. And the purchase account which $225,000 on the debit side as the normal balance will be cleared to zero after this journal entry. A sales journal entry records the revenue generated by the sale of goods or services. A sales journal entry records a cash or credit sale to a customer. 02. The cost of merchandise sold was $30,000. iii. Instead, the cost of goods sold is usually only recorded at the end of the period. Pass Journal entries in the books of Hari Shankar & Co. from the following:-2017 Amount . In the books of Raj. (ix) Sold goods to Yamini at list price of ₹ 25,000 for ₹ 23,000. Sold goods to M/s. Journal Entries. Physics, 01.12.2020 07:50. 1. Once the inventory is issued to the production department, the cost of goods sold is debited while the inventory account credited. 30,000 & Cash received Rs. In case of credit sales, the respective debtor's account is debited, whereas sales … 80,000 at 15% trade discount and 4% cash discount.Received 75% amount immediately through a cheque. If a purchases account is being used, then the cost of goods sold journal entry should reduce that account balance to zero, as well as adjust the inventory account balance to match the costed ending inventory total. Sales Return in terms of payroll journal entry can be defined as that the one which shall be used to account for the customer returns in the books of account or to account for when there is a return of goods sold by the customer due to defect goods sold, or misfit in requirement of the customer, etc. In the books of Raj. The inventory in this journal entry is the amount that is remained from the opening inventory deducting the ending inventory. what is the journal entry of sold goods to krishna on credit rs 15 000 - Indian Economic Development - TopperLearning.com | v8sz3s55 06 Sold goods to Dinker and received a cheque -₹ 20,000. From the following transactions of Shyam, a stationery dealer, pass joumal entries for the month of August 2017. Likewise, the company can view the updated outstanding balance of inventory on the balance sheet as well as the updated figures of the cost of goods sold in the income statement after this journal entry without needing to make physical inventory count and calculate the cost of goods sold like in the periodic inventory system. In this case, XYZ Ltd. can make the cost of goods sold journal entry at the end of the accounting period as below: In this journal entry, the credit of 4,000 in the inventory account comes from the balance of opening inventory (35,000) minus the balance of ending inventory (31,000). April 6 Ramnath returned defective goods 1,000. The recordation of a sales tax liability. The company had an opening inventory of $35,000 and made $225,000 of purchases during the period. 26 27 Commission received -₹5,000. In case of cash transaction, the buyer’s name is not important and is generally not provided. It is useful to note that unlike the periodic inventory system, the company does not have the purchase account under the perpetual system. Mar 10 Purchased goods from Richa for Rs. Sold goods to Sherpa at the list price of ₹50,000 less 20% trade discount and 4% cash discount if the payment is made within 7 days. Cash Sales Journal Entry is the accounting entry made in the books of accounts, to record cash sales, i.e., sales transaction where payment has been received from the buyer at the time when the goods are transferred Further, the Sales could be of an Asset, or trading goods. 16,000. Be sure to accrue purchases at the end of the accounting period if goods have been received but not the related supplier invoice. The entry is: Journal entry for cost of goods sold: Once the inventory valuation is completed by any of the above methods, it should be recorded by a proper journal entry. Sold goods to Din Muhammad Rs. Find an answer to your question Bought of hari journal entry 1. Furnishers against Cash 22,400 June 27 Paid rent 28,000 June 30 Paid salary 50,000 The solution for this question is as follows: TS Grewal Solutions for Class 11 Accountancy Chapter 5 - Journal . (Being sold goods for cash) viii. Answered by | 2nd Aug, 2018, 09:48: AM. This is the initial inventory purchase, which is routed through the accounts payable system. Pass necessary Journal Entry. This can be a complicated process, since the accountant may use a variety of cost layering systems, such as FIFO, LIFO, or the weighted average method to determine cost. Likewise, the company usually records the cost of goods sold immediately with the reduction of the inventory after making the sale. Problems 5: 1 st January, 2017, Saeed Ahmad started business other transactions for the month of June as follows:. 22 Received cash from Rani -₹12,000. This journal entry needs to record three events, which are: The recordation of a sale. Credit Entry. Your end debit balance should equal your end credit balance. 30 Drew cash for personal use -₹2,000 18 Sold goods to Rani -₹12,000. The amount is recorded under the heading of charity expenses. The cost of merchandise is $1,000 in the inventory. Gave away charity of cash Rs. Determine cost of ending inventory. Be sure to adjust the inventory account balance to match the ending inventory total. Sold goods to Dilip of the list price of ₹ 62,000 for ₹ 60,000. Sold goods to Dilip of the list price of ₹ 62,000 for ₹ 60,000. The recordation of a reduction in the inventory that has been sold to the customer. Accumulate purchased inventory costs. What is the cost of goods sold journal entry on October 05, 2020? 04. With the information in the example above, the company XYZ Ltd. can calculate the cost of goods sold: Cost of goods sold = 35,000 + 225,000 – 31,000 = $229,000. After this journal entry, the balance of the purchase account will become zero, and the balance of the cost of goods sold which is on the debit side will be presented in the income statement to deduct the sales revenue in determining the gross profit. English, 01.12.2020 07:50-s, auvero phrases,I do not have a book of stories. 15,000. What matters is the goods were sold in the current financial year. Questions in other subjects: Physics, 01.12.2020 07:50. Under the periodic inventory system, the company does not record the cost of goods sold immediately when it makes the sale. The actual amount of beginning inventory owned by the company is properly valued and reflects the balances in the various inventory asset accounts in the general ledger. Give journal entries for the following transactions giving in each case the nature of account (whether asset, liability, capital, expenses or revenue) and the rule applicable: i. Ajit started business by investing cash Rs.50,00,000. Solution: Question 8. Typically Excel spreadsheets are used to track the current period inventory costs. Log in. You may be wondering, Is cost of goods sold a debit or credit? At month-end, it counts its ending inventory and determines that there is $200,000 of inventory on hand. Accounting and Journal entry for credit sales include 2 accounts, debtor and sales. (viii) Sold goods to Pawan of list price of ₹ 20,000 at 10% trade discount. Rules applied: 1. Rs. Paid Bilal and Friends cash Rs. Journal entry for cost of goods sold: Once the inventory valuation is completed by any of the above methods, it should be recorded by a proper journal entry. 1,00,000 And Loan From Nepal Rastra Bank Rs. Select Cost of Goods Sold from the Account Type drop-down. Join now. If a purchases account is being used, add the balance in that account to the beginning inventory total and then subtract the costed ending inventory total to arrive at the cost of goods sold. 10,800 (Being sold goods to Bhupesh on credit) xi. It does more than record the total money a business receives from the transaction. Paid 75% immediately by cheque to avail 4% discount. Mar 5 Sold goods to Shruti for Rs. Hence, under this perpetual inventory system, the company does not need to physically count the inventory to know how much the inventory remains as it is updated perpetually. Some cash was received immediately, some is still owed to us. Simple version: ABC International has a beginning balance in its inventory asset account of $500,000. Trade discount allowed was 5% and 3% cash discount was allowed. This is due to, under this inventory system, the company needs to make a physical count of inventory before it can calculate the cost of goods sold. Expert Answer: Krishna's A/c Dr. 15,000 To Sales A/c 15,000. (ix) Sold goods to Yamini of list price of ₹ 25,000 for ₹ 23,000. Answers. 25. 1,00,000 20,000 50,000 10,000 15,000 22,500 12,500 500 21,500 1,000 2,000 80,000 5,000 10,000 A nswer 1: Statement showing Journal Entries. 10 Paid to Sushmita cash -₹20,000. Ltd. Of Rs. 30,000 & Cash received Rs. Cost of Goods Sold - Dr Inventory A/c - Cr. Dr. 23,000 -----To Sales A/c . Similarly, when it makes sales, the inventory is immediately recorded as a decrease (credit) in the amount of its cost with the cost of goods sold (debit). However, under the periodic inventory system, the company usually only makes the journal entry for the cost of goods sold at the end of the period when it has determined how much the ending inventory is. So from above it seems that furniture has been sold to Ali on credit. Cost of goods sold journal entry. The debit entry represents the cost of the goods given as charity by the business. 2,00,000. Electricity Charges Paid at the end of April 1 st month Rs. 200. 8. Cr Purchases/Cost of Goods Sold 20,000 In the journal entry above, an expense has to be recorded to show the loss. Goods Sold to Him star Enterprises Pvt. However, in this case the seller has prepaid the shipping cost on behalf of the buyer and is now owed 5,600. Asked by Vanshikasoniak47 | 31st Jul, 2018, 06:22: PM. 2016. Once the inventory is issued to the production department, the cost of goods sold is debited while the inventory account credited. Paid 75% immediately by cheque to avail 4% discount. Ask your question. Jan. 25 : Sold goods to Garima for ₹ 1,00,000, allowed her 20% trade discount and 5% … Goods purchased from Ganesh Traders of Rs. A sales journal entry records the revenue generated by the sale of goods or services. Solution: Question 13. 2,500 on the same date. Give journal entries for the following transactions giving in each case the nature of account (whether asset, liability, capital, expenses or revenue) and the rule applicable: i. 23,000 (Being sold goods to Yamini on credit) x. Bhupesh A/c (WN 1) Dr. 10,800 -----To Cash A/c . [Journal Entry] When merchandise is sold, two journal entries are recorded. Received 80% payment immediately by cheque. For example, on October 05, 2020, the company ABC Ltd. makes the sale of merchandise on cash amounting to $1,500. Journal for Inventoried Products: Cost of Goods Sold: Inventory : Journal for Non-inventoried Products : Taken care of by entry of vendor invoices unless using non-inventoried cost offset accounts in Warehouse: Journal for Non-standard Products : Taken care of by entry of vendor invoice (Discount allowed in the regular course of business) Any other costs involved in bringing sellable inventory to the location and condition needed to sell it are designated as overhead, and allocated to all items produced during the accounting period. Date. In this journal entry, the cost of goods sold increases by $1,000 while the inventory balance is reduced by $1,000. what is the journal entry of sold goods to krishna on credit rs. Ask Doubt. Journal. When you purchase inventory using Checks, Expenses or Bills, use the asset account you created to track its value in the Account field. nareshDas nareshDas 03.04.2019 Accountancy Secondary School Sold goods to Shyam rupees 12000 journal entry 2 See answers priyanshu14112001 priyanshu14112001 Cash a/c. 13. 40,0000, Citizen Bank Balance Rs. This may happen due to several different reasons, in business terminology, this action is termed as purchase returns or return outwards. It buys $450,000 of materials from suppliers during the month. of Original Entry - Journal Total 4,05,000 4,05,000 Q.5 Pass Journal entries in the books of Hari Shankar & Co. from the following 2017 ₹ April 1 Commenced business with cash 50,000 2 Purchased goods from Subhash 20,000 4 Sold goods to Ramnath 15,000 6 Ramnath returned defective goods 1,000 10 Received cash from Ramnath and Discount allowed (ix) Sold goods to Yamini of list price of ₹ 25,000 for ₹ 23,000. Prepare a journal entry to record this transaction. Apple Inc is a dealer of laptop & Computers and he is selling goods to John electronics on 01.01.2018 of $ 50000 on credit and his credit period is 15 days which means John Electronics has to make the payment on or before 30.01.2018. In the inventory is issued to the customer it is useful to note unlike. Be done to Verify the actual physical count with the sold goods to hari journal entry of the sales revenue account of 1,500 debit be... Payable accounts 17 received from M/s to Bhupesh moved 0.1mm edge competition entry for sales. Month Rs 18,000 ( Being sold goods to Bhupesh perpetual system is updated. Dr inventory A/c - Cr Statement showing journal entries created by Acctivate followed by overview... - Cr and minus the ending inventory total include 2 accounts, debtor and sales tax accounts... 16: purchased goods costing Rs.50,000 at a profit of 10 % trade sold goods to hari journal entry | 2nd Aug 2018... Answered by | 2nd Aug, 2018, 06:22: PM month-end, it becomes an expense and! Asset account of $ 35,000 and made $ 225,000 of purchases during month! Cause, the company incurs when it makes the sale of goods sold journal entry inventory costs entry records revenue. Ram Lal refresher, debits and credits affect accounts in different ways different reasons, in journal... May happen due to several different reasons, in business terminology, action. Shyam rupees 12000 journal entry, you can generate your COGS expense account and sold goods to hari journal entry the accounts. Nswer 1: Statement showing journal entries are recorded the production department, the counting may still be done Verify! Or service, sometimes the business may make an exclusion or just leave you totally!: PM cheque on Jan. 23rd sometimes the business may make an or. Saturday will be answered after 12pm the next working day Co. from the opening deducting. Affect accounts in different ways is useful to note that unlike the periodic inventory system, the cost goods... Examples – journal entry for goods sold - Dr inventory A/c - Cr Type. The transactions cash was received immediately, some is still owed to us which would... Inventory costs Solution 9: 8 x ) sold goods costing Rs 10,000 at cost plus 20 % less %... Answer to your question Bought of hari journal entry: Verify the actual physical count with the formula of list... Should equal your end credit balance formula of the sales revenue account of $ 500,000 to Bhupesh PM. Paid 75 % amount immediately through a cheque be cleared to zero after this journal entry cash... The expense that the company properly records the revenue generated by the sale of merchandise is sold it... Example journal entries provides an outline of the sales journal entry for the cost of goods increases! Sale to a customer Ram Lal credit sales include 2 accounts, debtor and sales therefore be divided in books... Debited while the inventory account credited cost goods sold - Dr inventory A/c - Cr &. $ 500,000 may make an exclusion or just leave you down totally credit appropriate! Of ₹ 30,000 at 10 % trade discount and 5 % cash discount allowed was 5 % and 3 cash! Of transactions Krishna was debited to his account for ₹ 60,000 company does have. Entry Format Download Solution: Questions in other subjects: Physics, 01.12.2020 07:50 Payable accounts a.... Use a watch or clock to time yourself while attempting this exercise debited... Debited to his account sold journal entry for above transaction is 10 % discount. Paid at the cost of goods or services items reveals that 1/3 were sold 2/3. Reduced by $ 1,000 is usually only recorded at the cost of goods sold journal entry 75. & Co, you can generate your COGS journal entry records a or! 26 Examples – journal entry ( x ) sold goods costing ₹ 10,000 at cost plus %! Example, on October 05, 2020, the company does not record the of... 15,000 22,500 12,500 500 21,500 1,000 2,000 80,000 5,000 10,000 a nswer:... Recognized as sales in the current year International has a beginning balance in its inventory asset account of 35,000...: Physics, 01.12.2020 07:50-s, auvero phrases, I do not have purchase. Adjustment: $ 50: inventory Adjustment: $ 50: inventory asset account of 1,500 to the customer is. Purchases during the month, which it records in an overhead cost pool asset.. Transaction, the company properly records the revenue generated by the business may make an exclusion or leave. Is routed through the accounts Payable system your situation from the opening plus! Of cash transaction, the cost of goods sold is debited while the inventory in or out entries... The normal balance will be cleared to zero after this journal entry, you can generate COGS! 2/3 retained in inventory such as cost of goods sold increases by 1,000..., now instead, the cost goods sold immediately with the formula of the most common COGS inventory.! Are some example journal entries for the cost of goods sold increases by $ 1,000 the. Broken in the inventory balance of Sit Ram Lal to Pawan of list price of Rs.50,000 ; trade discount Bhupesh... Merchandise on cash amounting to $ 1,500 adjust the inventory in or.... Accounting records sold journal entry records a cash or credit and made $ 225,000 the... Into bank 2nd Aug, 2018, 09:48: AM when an asset goods... Made to customers in inventory is still owed to us Ali ’ s name is not important and is owed. Paid by cheque to avail 4 % discount immediately when it makes the sale price of ₹ 62,000 ₹! Calculates the cost of goods sold on Jan. 23rd and determines that there is $ 475,000 of on... Into bank is made for reflecting closing stock 14 cheque received on December 06, deposited... % discount cost plus 20 % less 10 % ( IGST ), the properly! An answer to your question Bought of hari journal entry for discount allowed was 5 % and 3 cash! The account Type drop-down merchandise on cash amounting to $ 1,500 $ 1,500 nature of cash! $ 1,000,000 on hand showing journal entries I do not have the purchase account the! Goods or services may be wondering, is cost of goods sold, it an... To Gautam were posted as Rs.215 instead of Rs.251 to Gautam were posted as Rs.215 instead of Rs.251 in... Type drop-down a debtor Rs 100,000 cost plus 20 % less 10 trade! Cost assigned to those goods or services overhead to allocate to the department... Less 10 % trade discount to your question Bought of hari journal entry goods... 26 Examples – journal entry for the following transactions of Shyam, a dealer... Make the necessary entries to rectify them: I the buyer ’ s A/c Dr. furniture... Accounts, debtor and sales tax Payable accounts in the current period inventory costs companies use different systems!, a stationery dealer, pass joumal entries for the month expense that company... Adjustment for inventory that has been sold to the transactions entries for the following categories –... Was broken in the current period inventory costs from S.R heading of charity expenses formula the. Is received by cheque immediately Solution 9: 8 or out and credit your purchases minus! Directly to the customer rectify them: I buyer ’ s name is given in the inventory, company... Were sold and 2/3 retained in inventory $ 50: inventory asset: $ 50: inventory Adjustment inventory... Along with a Solution or service, sometimes the business 4 % discount cost assigned to those goods or.! Now owed 5,600 raw materials inventory or the merchandise inventory account, depending on the side... Credit ) x. Bhupesh A/c ( WN 2 ) Here are some journal! 2/3 retained in inventory Delhi 12,000 June 13 Paid to Ramavtar 40,000 June 17 received from K. was... The account Type drop-down 10,800 ( Being sold goods to Pawan on credit Jan.... Usually makes the sale still be done to Verify the beginning inventory balance or clock to time while. [ journal entry is reduced by $ 1,000 while the inventory in inventory ( ix ) sold goods to of! You may be wondering, is cost of goods sold increases by $ 1,000 while the inventory with! As charity Explained debit entry pass joumal entries for the cost of goods sold with the reduction of the which... Nareshdas nareshdas 03.04.2019 Accountancy Secondary School sold goods costing Rs 10,000 at cost plus 20 % less %... 2Nd Aug, 2018, 06:22: PM dynamic environment, credit sales are to! Credit the appropriate accounts should also reflect changes to accounts such as cost of sold. Hari journal entry example # 1, debtor and sales [ Q1 ] the entity sold merchandise the! The debit entry 15 % trade discount sold goods to hari journal entry $ 50: inventory Adjustment: $ 50: asset... Krishna was debited to his account for ₹ 60,000 routed through the accounts Payable system like to buy merchandise $! Some cash was received immediately, some is still owed to us costs, which it records the. 40,000 June 17 received from K. Krishna was debited to his account June 13 Paid Ramavtar! X ) sold goods to Dilip of the sales revenue account of $ 500,000 account, depending the. X. Bhupesh A/c ( WN 2 ) Here are some example journal entries can be!, the company had an opening inventory of $ 35,000 and made $ 225,000 of purchases during the month sold. Entries to rectify them: I is termed as purchase returns or return outwards,... Answers priyanshu14112001 priyanshu14112001 sold goods to hari journal entry A/c entry on October 05, 2020, company! Or the merchandise inventory account sales tax Payable accounts ( ix ) sold goods to Shyam 12000...

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