1. journalize the following transactions.

2. Prepare multi step income statement and closing entries from the following.

The company estimates sales returns at the end of each month. On April 5, purchased merchandise from Morris for $23,000, terms 2/10, net/30. FOB shipping point. On April 6, paid freight costs of $900 on merchandise purchased from Morris. On April 8, returned damaged merchandise to Morris and was granted a $3,000 credit for returned merchandise. On April 15, paid the amount due to Morris Company in full. 1. 2. 3 4 5 On December 3, Sayid sold $570,000 of merchandise to Shephard, terms 2/10, n/30. FOB Shipping Point. The cost of the merchandise sold was $350,000. On December 13, Sayid Company received the balance due from Shephard Co. 1 On December 15, Sayid Company sold $50,000 of merchandise to Fred, terms n/30. FOB g On December 20, Fred returned $10,000 of merchandise to Sayid (wrong color). The cost of the 4 On December 31, estimated sales returns (from December sales) of $25,000; cost of 15,000. Shipping Point. The cost of the merchandise sold was $30,000. merchandise was $6,000