A Company completed the following transactions in October:

Credit Sales

Sales Returns

Date Amount

Oct 14 $500 20 1,200 23 400 27 500

Date of Collection

Oct 8 16 29 27 28

Date

Oct 3 11 17 21 23

Amount

$ 800 1,200 7,000 1,700 2,500

Terms

2/10, n/30 3/10, n/30 1/10, n/30 2/10, n/60 2/10, n/30

The Company uses a perpetual inventory system.

Required

a) Calculate the cash received for each collection. Show your calculations.

b) Prepare the journal entry for the

Oct. 17 sale. The merchandise sold had a cost of $3,500

Oct. 23 sales return. The merchandise returned had a cost of $200 and was

returned to inventory

Oct. 28 collection