Sandhill Wholesalers uses a perpetual inventory system. March. 1. Stellar Stores purchases $8,900 of merchandise for resale from Sandhill Wholesalers, terms 2/10, n/30, FOB shipping point. 2. The correct company pays $150 for the shipping charges. 3. Stellar returns $1,000 of the merchandise purchased on March 1 because it was the wrong colour. Sandhill gives Stellar a $1,000 credit on its account. 21.Stellar Stores purchases an additional $12,500 of merchandise for resale from Sandhill Wholesalers, terms 2/10, n/30, FOB destination. 22.The correct company pays $195 for freight charges. 23.Stellar returns $450 of the merchandise purchased on March 21 because it was damaged. Sandhill gives Stellar a $450 credit on its account. 30.Stellar paid Sandhill the amount owing for the merchandise purchased on March 1.
Sandhill Wholesalers uses a perpetual inventory system.
March.
1. Stellar Stores purchases $8,900 of merchandise for resale from Sandhill Wholesalers, terms 2/10, n/30, FOB shipping point.
2. The correct company pays $150 for the shipping charges.
3. Stellar returns $1,000 of the merchandise purchased on March 1 because it was the wrong colour. Sandhill gives Stellar a $1,000 credit on its account.
21.Stellar Stores purchases an additional $12,500 of merchandise for resale from Sandhill Wholesalers, terms 2/10, n/30, FOB destination.
22.The correct company pays $195 for freight charges.
23.Stellar returns $450 of the merchandise purchased on March 21 because it was damaged. Sandhill gives Stellar a $450 credit on its account.
30.Stellar paid Sandhill the amount owing for the merchandise purchased on March 1.
31.Stellar paid Sandhill the amount owing for the merchandise purchased on March 21.
Additional information:
March.
1. Sandhill's cost of the merchandise sold to Stellar was $4,100.
3. Sandhill's cost of the merchandise returned by Stellar was $461. As the merchandise was not damaged, it was returned to Sandhill's inventory.
21. Sandhill's cost of the additional merchandise sold to Stellar Stores was $5,758.
23. Sandhill's cost of the merchandise returned by Stellar was $207. As the merchandise was damaged, it was put in the recycling bin.
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