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EX 5-12 Sales-related transactions Obj. 2 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 is $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.

EX 5-12 Sales-related transactions Obj. 2 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 is $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.

FINANCIAL ACCOUNTING
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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TuJtumers who used MasterCard and VISA, $475,000, The cost of the goods sold was $280,000. was $58,800. d. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was S39,000. Received an invoice from National Clearing House Credit Co. for $13,450 representing a service fee paid for pro- cessing MasterCard, VISA, and American Express sales. е. EX 5-10 Customer refund Senger Company sold merchandise of $15,500, terms 2/10, n/30, to Burris Inc. on April 23. Burris paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $650 for costs incurred by Burris to repair defective merchandise. (a) Journalize the entry by Senger Company to record the customer refund to Buris Inc. (b) Assume that instead of paying Burris cash, Senger issued a credit memo to Burris to be used against Burris's outstanding account receivable balance. Journalize the entry by Senger Company to record the issuance of the credit memo. Obj. 2 EX 5-11 Customer return and refund Obj. 2 On December 28, 20Y3, Silverman Enterprises sold $18,500 of merchandise to Beasley Co. with terms 2/10, n/30. The cost of the goods sold was $11,200. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,000 and the merchandise originally cost Silverman Enterprises $2,350. (a) Journalize the entries by Silverman Enterprises to record the December 28, 20Y3, sale. (b) Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4. (c) Journalize the entry to record the receipt of the amount due by Beasley Co. on January 7, 20Y4. Obj. 2 EX 5-12 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 is $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. SHOW ME HOW
Transcribed Image Text:TuJtumers who used MasterCard and VISA, $475,000, The cost of the goods sold was $280,000. was $58,800. d. Sold merchandise to customers who used American Express, $63,000. The cost of the goods sold was S39,000. Received an invoice from National Clearing House Credit Co. for $13,450 representing a service fee paid for pro- cessing MasterCard, VISA, and American Express sales. е. EX 5-10 Customer refund Senger Company sold merchandise of $15,500, terms 2/10, n/30, to Burris Inc. on April 23. Burris paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $650 for costs incurred by Burris to repair defective merchandise. (a) Journalize the entry by Senger Company to record the customer refund to Buris Inc. (b) Assume that instead of paying Burris cash, Senger issued a credit memo to Burris to be used against Burris's outstanding account receivable balance. Journalize the entry by Senger Company to record the issuance of the credit memo. Obj. 2 EX 5-11 Customer return and refund Obj. 2 On December 28, 20Y3, Silverman Enterprises sold $18,500 of merchandise to Beasley Co. with terms 2/10, n/30. The cost of the goods sold was $11,200. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,000 and the merchandise originally cost Silverman Enterprises $2,350. (a) Journalize the entries by Silverman Enterprises to record the December 28, 20Y3, sale. (b) Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4. (c) Journalize the entry to record the receipt of the amount due by Beasley Co. on January 7, 20Y4. Obj. 2 EX 5-12 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 is $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. SHOW ME HOW
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