My Questions: 1, How about the customers return the goods after the discount date in net cost method (above method)? How should I record the transactions un customers and seller view? 2, How about the the allowance? As above example is customers return goods to seller, but allowance is the customers keep the unsatified product and the seller give some amount of money to the buyer, how should i record in buyer view?
this is about merchandising actvities, customer return goods to buyer using net cost method. (perpectual system)
I buy 10 cakes from Charles on account and each cost $5 dollars, 2/10, n/30
Buyer view:
Inventory 490
A/P 490
(as it is a net cost method, so i reocrd the transaction 490 rather than 500)
I return all the cake to charles
Buyer views:
A/P 490
Inventory 490
Seller veiws:
Sales and discount allowances (in this case it is return) 490
A/R 490
Inventory 300
COGS 300
So this example above is return the goods within the discount date using net cost method.
My Questions:
1, How about the customers return the goods after the discount date in net cost method (above method)? How should I record the transactions un customers and seller view?
2, How about the the allowance? As above example is customers return goods to seller, but allowance is the customers keep the unsatified product and the seller give some amount of money to the buyer, how should i record in buyer view?
Step by step
Solved in 4 steps
