On May 12, Wilcox Company accepted delivery of $20,000 of merchandise and received an invoice dated May 11, with terms of 3/10, n/30, FOB Garner Company’s factory. When the goods were delivered, Wilcox Company paid $185 to Express Shipping Service for the delivery charges on the merchandise. The next day, Wilcox Company returned $800 of defective goods to the seller, which received them one day later. On May 21, Wilcox Company mailed a cheque to Garner Company for the amount owed on that date. It was received the following day. Required a. Present the journal entries that Wilcox Company should record for these transactions. b. Present the journal entries that Garner Company should record for these transactions.
On May 12, Wilcox Company accepted delivery of $20,000 of merchandise and received an
invoice dated May 11, with terms of 3/10, n/30, FOB Garner Company’s factory. When the
goods were delivered, Wilcox Company paid $185 to Express Shipping Service for the delivery charges on the merchandise. The next day, Wilcox Company returned $800 of defective goods to the seller, which received them one day later. On May 21, Wilcox Company
mailed a cheque to Garner Company for the amount owed on that date. It was received the
following day.
Required
a. Present the
b. Present the journal entries that Garner Company should record for these transactions.
Step by step
Solved in 2 steps with 4 images