Study the following transactions that occurred during August 2022 for Renwick & Co. Aug 2 – Renwick & Co. sold 40 office desks costing $2,000 each, at a unit price of $4,500 to Shams Ltd. Terms: 2/10, n/30. Aug 7 – Shams Ltd. Returned for full credit 6 of the desks acquired on August 2 because they were of the incorrect size and style. Aug 8 – Renwick & Co. returned the office desks to its inventory. Aug 9 – Renwick & Co. received payment by cheque from Shams Ltd. for 30 office desks. Aug 27 – Renwick & Co. received payment in cash from Shams Ltd. in full settlement for the remaining office desks acquired on August 2. Renwick & Co. uses the net method to record sales and cash discounts and the perpetual inventory system.
Study the following transactions that occurred during August 2022 for Renwick & Co.
Aug 2 – Renwick & Co. sold 40 office desks costing $2,000 each, at a unit price of $4,500 to Shams Ltd. Terms: 2/10, n/30.
Aug 7 – Shams Ltd. Returned for full credit 6 of the desks acquired on August 2 because they were of the incorrect size and style.
Aug 8 – Renwick & Co. returned the office desks to its inventory.
Aug 9 – Renwick & Co. received payment by cheque from Shams Ltd. for 30 office desks.
Aug 27 – Renwick & Co. received payment in cash from Shams Ltd. in full settlement for the remaining office desks acquired on August 2.
Renwick & Co. uses the net method to record sales and cash discounts and the perpetual inventory system.
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