Question
Journalize the following transactions for the seller, Watson Company, using the gross method to account for sales discounts. Assume a perpetual inventory system. Make sure
Journalize the following transactions for the seller, Watson Company, using the gross method to account for sales discounts. Assume a perpetual inventory system. Make sure to enter the day for each separate transaction.
| November | 3 | Sold goods costing $3,600 to Ward Company on account, $6,000, terms 1/10, n/30. The goods are sold FOB shipping point, freight prepaid by seller, $100. | |
| November | 9 | Ward Company returned damaged merchandise previously purchased on account, $1,100. | |
| November | 13 | Received the amount due from Ward Company. |
Note: The entry to record the shipping payment to the delivery company is not required in this problem.
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Accounting And Finance For Non Specialists
Authors: Eddie McLaney, Peter Atrill
8th Edition
9780273778165
