January 3: Cash sale, $180. The cost of the merchandise was $108. Record the cost of the sale. Date Jan. 3 Date Jan. 8 Account Titles Debit January 8: Issued credit memorandum no. 1 to Capetown Co. for defective merchandise, $300. The cost of the merchandise was $180. Begin by recording the receivable portion of the adjustment. Do not yet adjust for the cost of the merchandise returned. We will do that in the following step. Account Titles Credit Debit Credit

January 3: Cash sale, $180. The cost of the merchandise was $108. Record the cost of the sale. Date Jan. 3 Date Jan. 8 Account Titles Debit January 8: Issued credit memorandum no. 1 to Capetown Co. for defective merchandise, $300. The cost of the merchandise was $180. Begin by recording the receivable portion of the adjustment. Do not yet adjust for the cost of the merchandise returned. We will do that in the following step. Account Titles Credit Debit Credit

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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