Journalize the following inventory merchandise transactions for the seller and the buyer, assuming that both uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point. The cost of the merchandise is $2,850. The seller prepays the freight of $75. 3 Buyer returns $700 of merchandise as defective. The cost of the merchandise is $420. 8 Buyer pays within the discount period.
Journalize the following inventory merchandise transactions for the seller and the buyer, assuming that both uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point. The cost of the merchandise is $2,850. The seller prepays the freight of $75. 3 Buyer returns $700 of merchandise as defective. The cost of the merchandise is $420. 8 Buyer pays within the discount period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Journalize the following inventory merchandise transactions for the seller and the buyer, assuming that both uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles.
| Dec. | 1 | Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point. The cost of the merchandise is $2,850. The seller prepays the freight of $75. |
| 3 | Buyer returns $700 of merchandise as defective. The cost of the merchandise is $420. | |
| 8 | Buyer pays within the discount period. |
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