Prepare journal entries to record each of the following sales transactions of a merchandising company. Assume a perpetual inventory system and use of the gross method (beginning inventory equals $9,000). June 1 Sold 50 units of merchandise to a customer for $150 per unit under credit terms of 2∕10, n∕30, FOB shipping point, and the invoice is dated June 1. The 50 units of merchandise had cost $100 per unit. 7 The customer returns 2 units purchased on June 1 because those units did not fit its needs. The seller restores those units to its inventory (as they are not defective) and credits Accounts Receivable from the customer. 11 The seller receives the balance due from the June 1 sale to the customer less returns and allowances. 14 The customer discovers that 10 units have minor damage but keeps them because the seller sends a $50 cash payment allowance to compensate.
Prepare
Assume a perpetual inventory system and use of the gross method (beginning inventory equals $9,000).
June 1 Sold 50 units of merchandise to a customer for $150 per unit under credit terms of 2∕10, n∕30, FOB
shipping point, and the invoice is dated June 1. The 50 units of merchandise had cost $100 per unit.
7 The customer returns 2 units purchased on June 1 because those units did not fit its needs. The
seller restores those units to its inventory (as they are not defective) and credits Accounts Receivable
from the customer.
11 The seller receives the balance due from the June 1 sale to the customer less returns and allowances.
14 The customer discovers that 10 units have minor damage but keeps them because the seller
sends a $50 cash payment allowance to compensate.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
