Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of $100. Prior te payment, $1,600 of the merchandise is returned. The invoice is paid within the discount period. Required: Record the foregoing transactions of the buyer in the sequence indicated below, assuming a perpetual inventory system is used. a. Purchased the merchandise on December 21.* b. Recorded receipt of the credit memo for merchandise returned on December 28.* C. Paid the amount owed on December 31.*
Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of $100. Prior te payment, $1,600 of the merchandise is returned. The invoice is paid within the discount period. Required: Record the foregoing transactions of the buyer in the sequence indicated below, assuming a perpetual inventory system is used. a. Purchased the merchandise on December 21.* b. Recorded receipt of the credit memo for merchandise returned on December 28.* C. Paid the amount owed on December 31.*
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter10: Cash Receipts And Cash Payments
Section: Chapter Questions
Problem 5PB
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