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Sandhill Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Martinez Ltd. for $27,440, terms n/30, FOB shipping point. The appropriate company paid freight costs of $686 on the merchandise purchased on April 3. 7 Purchased supplies on account for $4,900. 1. 2. 3. 6 8 30 Returned merchandise to Martinez and received a credit of $3,430. The merchandise was returned to inventory for future resale. Paid the amount due to Martinez in full. The cost of the merchandise sold on April 3 was $18,620. Martinez expected a return rate of 15%. The cost of the merchandise returned on April 8 was $2,254. Martinez uses a perpetual inventory system.

Sandhill Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Martinez Ltd. for $27,440, terms n/30, FOB shipping point. The appropriate company paid freight costs of $686 on the merchandise purchased on April 3. 7 Purchased supplies on account for $4,900. 1. 2. 3. 6 8 30 Returned merchandise to Martinez and received a credit of $3,430. The merchandise was returned to inventory for future resale. Paid the amount due to Martinez in full. The cost of the merchandise sold on April 3 was $18,620. Martinez expected a return rate of 15%. The cost of the merchandise returned on April 8 was $2,254. Martinez uses a perpetual inventory system.

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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Hello,

I'm a bit confused on how to record these transactions. The transactions are recorded uner the books of Martinez

Date Apr. 3 Apr. 6 Account Titles and Explanation Accounts Receivable Inventory Cost of Goods Sold (To record credit sale) (To record cost of merchandise sold) (To record return of goods) (To record cost of merchandise returned) Debit 27440 100 [ Credit 411 1862
Transcribed Image Text:Date Apr. 3 Apr. 6 Account Titles and Explanation Accounts Receivable Inventory Cost of Goods Sold (To record credit sale) (To record cost of merchandise sold) (To record return of goods) (To record cost of merchandise returned) Debit 27440 100 [ Credit 411 1862
Sandhill Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Martinez Ltd. for $27,440, terms n/30, FOB shipping point. The appropriate company paid freight costs of $686 on the merchandise purchased on April 3. 7 Purchased supplies on account for $4,900. Returned merchandise to Martinez and received a credit of $3,430. The merchandise was returned to inventory for future resale. Paid the amount due to Martinez in full. 1. 2. 3. 6 8 30 The cost of the merchandise sold on April 3 was $18,620. Martinez expected a return rate of 15%. The cost of the merchandise returned on April 8 was $2,254. Martinez uses a perpetual inventory system.
Transcribed Image Text:Sandhill Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Martinez Ltd. for $27,440, terms n/30, FOB shipping point. The appropriate company paid freight costs of $686 on the merchandise purchased on April 3. 7 Purchased supplies on account for $4,900. Returned merchandise to Martinez and received a credit of $3,430. The merchandise was returned to inventory for future resale. Paid the amount due to Martinez in full. 1. 2. 3. 6 8 30 The cost of the merchandise sold on April 3 was $18,620. Martinez expected a return rate of 15%. The cost of the merchandise returned on April 8 was $2,254. Martinez uses a perpetual inventory system.
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I'm sorry but when i submitted my question I stated that the transactions are recorded unde the books of Martinez Ltd... so the answer to this question is not what I was aking. I'm wondering how you record these transactions if Martinez Ltd. was doing the recording in their books. Thanks

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