# Sales-related transactions After the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned was$16,800. (a) What is the amount of the refund owed to the customer? (b) Journalize the entries made by the seller to record the return and the refund.

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 6, Problem 6.10EX
Textbook Problem

## Sales-related transactionsAfter the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned was$16,800. (a) What is the amount of the refund owed to the customer? (b) Journalize the entries made by the seller to record the return and the refund.

Expert Solution

a.

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Calculate: The amount of the refund owed to the customer.

### Explanation of Solution

Calculate the amount of refund owed to the customer.

Sales = \$28,000

Estimated percent of refunds = 2%

Amount of refund owed to customer = Sales(Estimated percent ofrefunds)=Sales(Sales×percent o

Expert Solution

b.

To determine

To Record: The sales transactions in the books of the company.

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