Eyre Inc. uses a perpetual inventory system and charges 19% interest on the balance due if not paid within the payment terms, sells merchandise on account to two customers:

The first customer was Jane Limited where Eyre sold $1,800 worth of merchandise on October 31, terms 2/10, n/30. The goods had cost Eyre $990. On November 4, Jane returned merchandise worth $500. This merchandise had a cost of $275 and the merchandise was not returned to inventory as it was defective. On December 2, Eyre received payment from Jane for the entire balance due.

The second customer was Pride Inc. where Eyre sold $5,000 worth of merchandise on November 1, terms 2/10, n/30. The goods had cost Eyre $2,750. On November 9 Pride paid off their account.

Instructions

Assuming that Eyre Inc. prepares adjusting entries on a monthly basis, prepare the appropriate journal entries. Round to the nearest dollar.