eBook Customer return and refund On December 28, 20Y3, Silverman Enterprises sold $17,500 of merchandise to Beasley Co. with terms n/30. The cost of the goods sold was $11,800. On December 31, 2013, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,500 and the merchandise originally cost Silverman Enterprises $2,500. a. Journalize the entries by Silverman Enterprises to record the December 28, 2013, sale. If an amount box does not require an entry, leave it blank. 20Y3 Dec. 28 Accounts Receivable-Beasley Co. 17,325 X Sales 17,325 X 20Y3 Dec. 28 Cost of Goods Sold Inventory 11,800 V 11,800 b. Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 2014. If an amount box does not require an entry, leave it blank. 20Y4 Jan. 3 Customer Refunds Payable 4,455 X Accounts Receivable-Beasley Co. 4,455 X 20Y4 Jan. 3 Inventory Estimated Returns Inventory 2,500 2,500 c. Journalize the entry to record the receipt of the amount due by Beasley Co. on January 7, 2014. If an amount box does not require an entry, leave it blank. 20Y4 Jan. 7 Cash 12,870 X Accounts Receivable-Beasley Co. 12,870 X Sales promotions At the bottom of all its February sales receipts, Seifert Stores Inc. printed $2-off coupons. The coupons may be redeemed March 1-April 30. Seifert Stores Inc. accepts only cash, MasterCard, or VISA. During February, Seifert Stores completed the following selected transactions: Feb. 6. Sold merchandise to Marci Andrews with a list price of $175 that cost Seifert Stores Inc. $80. Marci presented a $5- off coupon, which she clipped out of the local newspaper. Marci used her VISA card for the purchase. 18. Sold merchandise to Chris Johnson with a list price of $50 that cost Seifert Stores $24. The bottom of Chris Johnson's cash receipt includes the $2-off coupon. Chris paid cash for his purchase. a. Journalize the February 6 sale to Marci Andrews. If an amount box does not require an entry, leave it blank. Feb. 6 Cash Sales Feb. 6 Cost of Goods Sold Inventory 170 170 80 V 80 I b. Journalize the February 18 sale to Chris Johnson. If an amount box does not require an entry, leave it blank. Feb. 18 Cash 50 50 Sales Feb. 18 Cost of Goods Sold 24 Inventory 24 c. Journalize the liability (if any) on February 28 for the coupons Seifert Stores printed in February. Assume that Seifert Stores sold $25,000,000 of merchandise in February, which generated 12,500,000 printed sales receipts. The merchandise sold cost $16,500,000. Siefert Stores estimates that 15% of the $2-off coupons printed in February will be redeemed before they expire April 30. If an amount box does not require an entry, leave it blank. Feb. 28 Sales Estimated Coupons Payable 21,250,000 3,750,000