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1. On October 7, XYZ sells ABC Company $5,000 of inventory, Terms: 2/15/n45; FOB Destination; on account On October 10th, ABC returns $1,000 of the
1. On October 7, XYZ sells ABC Company $5,000 of inventory, Terms: 2/15/n45; FOB Destination; on account On October 10th, ABC returns $1,000 of the inventory because of it being defective. On October 15, ABC pays XYZ, the full amount, less the discount. Answer the following questions: a. What is the entry by XYZ on October 7th? b. What is the entry by ABC on October 7th> c. What is the entry by XYZ on October 10th for the return? d. What is the entry by ABC on October 10th for the return? e. What is the entry by XYZ for the receipt of cash on October 15th? the f. What is the entry by ABC Co for the payment on October 15th? Fill this section out: Sales SRA Sales Dis Net Sales COGS Gross Profit
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