a) Happy Customer Inc (HCI) buys merchandise from Profitable Seller CO (PSC) for $5,000. The payment terms are 2/15,N30 and shipping terms are FOB Shipping Poin The merchandise cost PSC $2,000. b) Some of the merchandise is damaged and HCI returns $200 worth of product to PSC. PSC cannot resell the merchandise. c) HCI pays the amount owed to PSC with in 11 days of the transaction. d) The responsible party pays $100 for shipping of the merchandise. REQUIRED: Prepare the journal entries (in good form) for the Seller (PSC) Prepare the journal entries (in good form) for the Buyer (HCI) Please write journals for Buyer and Seller on 2 separate pages.

a) Happy Customer Inc (HCI) buys merchandise from Profitable Seller CO (PSC) for $5,000. The payment terms are 2/15,N30 and shipping terms are FOB Shipping Poin The merchandise cost PSC $2,000. b) Some of the merchandise is damaged and HCI returns $200 worth of product to PSC. PSC cannot resell the merchandise. c) HCI pays the amount owed to PSC with in 11 days of the transaction. d) The responsible party pays $100 for shipping of the merchandise. REQUIRED: Prepare the journal entries (in good form) for the Seller (PSC) Prepare the journal entries (in good form) for the Buyer (HCI) Please write journals for Buyer and Seller on 2 separate pages.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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