Journalize the following foregoing transactions of the seller, assuming that the company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the following terms: FOB destination, 2/10, n/30. The seller prepays the freight costs of $85 (debit Delivery Expense for the freight costs). 4 Prior to payment for the goods, the seller issues a credit memo for $750 to the customer for merchandise costing $425 that is returned. 8 Payment is received within the discount period.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Journalize the following foregoing transactions of
the seller, assuming that the company uses the
perpetual inventory system. Refer to the Chart of
Accounts for exact wording of account titles.
Dec.
1
Merchandise with a list
price of $4,200 and
costing $2,300 is sold
on account, subject to
the following terms:
FOB destination, 2/10,
n/30. The seller
prepays the freight
costs of $85 (debit
Delivery Expense for
the freight costs).
4
Prior to payment for the
goods, the seller issues
a credit memo for $750
to the customer for
merchandise costing
$425 that is returned.
8
Payment is received
within the discount
period.
Transcribed Image Text:Journalize the following foregoing transactions of the seller, assuming that the company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the following terms: FOB destination, 2/10, n/30. The seller prepays the freight costs of $85 (debit Delivery Expense for the freight costs). 4 Prior to payment for the goods, the seller issues a credit memo for $750 to the customer for merchandise costing $425 that is returned. 8 Payment is received within the discount period.
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