Becketts industries sells to wholsalers. Customers must pay within 15 days or at the point if sale using a credit card. Becketts cost of goods sold is 30% of sales:

First record the normal journal entry and then do the cost of goods sold

example

March 3 Sold $14,000 of merchandise to West Company on account. March 4 Sold $1,500 of merchandise to Yanson Corp., who paid by credit card. The credit card company charges Beckett a fee of 3% on credit card sales. March 5 West Company returned $400 of the merchandise from March 3. March 7 Sold $800 of merchandise to Macbeth, Inc., on account. March 15 West Company paid the balance of what it owed for the purchase on March 3. March 19 Sold $23,000 of merchandise to Zunker C. on account. March 21 Zunker reported that some of the merchandise received was scratched and returned $1,400 worth of merchandise to Beckett. March 23 Silld $37,000 of merchandise to Niskas C. on account. March 25 Zunker paid the balance of what it owed for the purchase on March 19. March 31 Beckett made the adjusting entries for the month to accrue for estimated future returns. Beckett estimates that 2% of total sales will be returned. March 3: Sold \$14,000 of merchandise to West Company on account. Do not record the cost of goods sold entry yet. We will do that in the next step. Journal Entry Now record the cost of goods sold for the sale of merchandise on March 3