On March 12, Fret Company sold merchandise in the amount of $9,400 to Babson Company, with credit terms of 3/10, n/30. The cost of the items sold is $5,300. Fret uses the perpetual inventory system and the net method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the returned merchandise is $760 and the cost of the merchandise returned is $430. The entry or entries that Fret must make on March 15 is (are
On March 12, Fret Company sold merchandise in the amount of $9,400 to Babson Company, with credit terms of 3/10, n/30. The cost of the items sold is $5,300. Fret uses the perpetual inventory system and the net method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the returned merchandise is $760 and the cost of the merchandise returned is $430. The entry or entries that Fret must make on March 15 is (are
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 12, Fret Company sold merchandise in the amount of $9,400 to Babson Company, with credit terms of 3/10, n/30. The cost of the items sold is $5,300. Fret uses the perpetual inventory system and the net method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the returned merchandise is $760 and the cost of the merchandise returned is $430. The entry or entries that Fret must make on March 15 is (are):
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