Answer:
a. $27,440 [$28,000 – ($28,000 × 2%)]
b.
Sales Returns and Allowances 28,000
Sales Discounts 560
Cash 27,440
b.
Merchandise Inventory 16,800
Cost of Merchandise Sold 16,800
EX 6-10 Sales-related transactions
After the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was $16,800. (a) What is the amount of the refund owed to the customer? (b) Journalize the entries made by the seller to record the return and the refund.
Answer:
a. $27,440 [$28,000 – ($28,000 × 2%)]
b.
Sales Returns and Allowances 28,000
Sales Discounts 560
Cash 27,440
b.
Merchandise Inventory 16,800
Cost of Merchandise Sold 16,800
Answer:
a. $27,440 [$28,000 – ($28,000 × 2%)]
b.
Sales Returns and Allowances 28,000
Sales Discounts 560
Cash 27,440
b.
Merchandise Inventory 16,800
Cost of Merchandise Sold 16,800