Based on the information below, journalize the entries for the Seller and the Buyer. Both use a perpetual inventory system. (a) Seller sells Buyer on account merchandise costing $245 for $645, terms 2/10, net 30, FOB destination. The freight charge is $45. (b) Buyer returns as defective $145 worth of the $645 merchandise received. The seller's cost is $70. (c) Buyer pays within the discount period.
Based on the information below, journalize the entries for the Seller and the Buyer. Both use a perpetual inventory system. (a) Seller sells Buyer on account merchandise costing $245 for $645, terms 2/10, net 30, FOB destination. The freight charge is $45. (b) Buyer returns as defective $145 worth of the $645 merchandise received. The seller's cost is $70. (c) Buyer pays within the discount period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Based on the information below,
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(a) |
Seller sells Buyer on account merchandise costing $245 for $645, terms 2/10, net 30, FOB destination. The freight charge is $45.
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(b) |
Buyer returns as defective $145 worth of the $645 merchandise received. The seller's cost is $70.
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(c) |
Buyer pays within the discount period.
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Answer the above questions assuming both seller and buyer use the periodic inventory system. |
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