Legend Company sold $87,000 worth of goods on account to Destiny Inc. on June 20. It cost Legend $60,900 to make these goods. Destiny has 30 days to return the goods for any reason. On July 1, Destiny returns $8,000 worth of goods that had cost Legend $5,600. Legend expects to be able to resell these goods for a profit. Prepare the following entries on the books of Legend Company: Journal entries to record the initial sales on June 20 if a perpetual inventory system is used
Legend Company sold $87,000 worth of goods on account to Destiny Inc. on June 20. It cost Legend $60,900 to make these goods. Destiny has 30 days to return the goods for any reason. On July 1, Destiny returns $8,000 worth of goods that had cost Legend $5,600. Legend expects to be able to resell these goods for a profit. Prepare the following entries on the books of Legend Company: Journal entries to record the initial sales on June 20 if a perpetual inventory system is used
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Legend Company sold $87,000 worth of goods on account to Destiny Inc. on June 20. It cost Legend
$60,900 to make these goods. Destiny has 30 days to return the goods for any reason. On July 1, Destiny
returns $8,000 worth of goods that had cost Legend $5,600. Legend expects to be able to resell these
goods for a profit.
Prepare the following entries on the books of Legend Company:
Journal entries to record the initial sales on June 20 if a perpetual inventory system is used
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