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Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: |
a. | Sold merchandise for cash (cost of merchandise $44,797). | $83,200 | ||||||||||
b. | Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $600). | 1,000 | ||||||||||
c. | Sold merchandise (costing $8,550) to a customer, on account with terms 2/10, n/30. | 18,000 | ||||||||||
d. | Collected half of the balance owed by the customer in (c) within the discount period. | 8,820 | ||||||||||
e. | Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid | 288 | ||||||||||
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