Question
Customer refund Senger Company sold merchandise of $20,000, terms n/30, to Burris Inc. on April 12. Burris paid Senger for the merchandise on May 12.
Customer refund
Senger Company sold merchandise of $20,000, terms n/30, to Burris Inc. on April 12. Burris paid Senger for the merchandise on May 12. On June 1, Senger paid Burris $510 for costs incurred by Burris to repair defective merchandise.
a. Journalize the entry by Senger Company to record the customer refund to Burris Inc. If an amount box does not require an entry, leave it blank.
| Date | Account | Debit | Credit |
|---|---|---|---|
| June 1 | Accounts PayableAccounts Receivable-Burris Inc.CashCustomer Refunds PayableSales | - Select - | - Select - |
Accounts PayableAccounts Receivable-Burris Inc.CashCustomer Refunds PayableSales | - Select - | - Select - |
b. Assume that instead of paying Burris cash, Senger issued a credit memo to Burris to be used against Burriss outstanding account receivable balance. Journalize the entry by Senger Company to record the issuance of the credit memo. If an amount box does not require an entry, leave it blank.
| Date | Account | Debit | Credit |
|---|---|---|---|
| June 1 | Accounts PayableAccounts Receivable-Burris Inc.Customer Refunds PayableInventorySales Discount | - Select - | - Select - |
Accounts PayableAccounts Receivable-Burris Inc.Customer Refunds PayableInventorySales Discount | - Select - | - Select - |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
4th edition
78025524, 978-0078025525
