Chapter 5, Problem 5.10EX

Customer refund

Senger Company sold merchandise of $15,500, terms 2/10, n/30, to Burris Inc. on April 23. Burris paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $650 for costs incurred by Burris to repair defective merchandise. (A) Journalize the entry by Senger Company to record the customer refund to Burris Inc. (B) Assume that instead of paying Burris cash, Senger issued a credit memo to Burris to be used against Burris’s outstanding account receivable balance. journalize the entry by Senger Company to record the issuance of the credit memo.