Question
10. Prepare journal entries to record each of the following transactions. Assume a perpetual inventory system and use of the gross method. Beginning inventory
10. Prepare journal entries to record each of the following transactions. Assume a perpetual inventory system and use of the gross method. Beginning inventory equals $9,000. June 1 Sold 50 units of merchandise to a customer for $150 per unit under terms of 2/10, n/30, FOB shipping point, and the invoice is dated June 1. The 50 units of merchandise had cost $100 per unit. June 7 - The customer returns 2 units purchased on June 1 because those units did not fit its needs. The seller returns those units to its inventory (as they are not defective) and credits Accounts Receivable from the customer. June 11 The seller receives the balance due from the June 1 sale to the customer less returns and allowances. June 14 The customer discovers that 10 units have minor damage but keeps because the seller sends a $50 cash payment allowance to compensate. DATE ACCOUNT DEBIT CREDIT
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