Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. Oct. 1 Sold fair trade merchandise for $1,500, with credit terms n∕30, invoice dated October 1. The cost of the merchandise is $900. 6 The customer in the October 1 sale returned $150 of fair trade merchandise for full credit. The merchandise, which had cost $90, is returned to inventory. 9 Sold recycled leather merchandise for $700, with credit terms of 1∕10, n∕30, invoice dated October 9. Cost of the merchandise is $450. 11 Received payment for the amount due from the October 1 sale less the return on October 6.
Prepare
EcoMart uses a perpetual inventory system and the gross method.
Oct. 1 Sold fair trade merchandise for $1,500, with credit terms n∕30, invoice dated October 1. The
cost of the merchandise is $900.
6 The customer in the October 1 sale returned $150 of fair trade merchandise for full credit. The
merchandise, which had cost $90, is returned to inventory.
9 Sold recycled leather merchandise for $700, with credit terms of 1∕10, n∕30, invoice dated
October 9. Cost of the merchandise is $450.
11 Received payment for the amount due from the October 1 sale less the return on October 6.
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