Question
LMN Corporation sold merchandise for $30,000 on credit, which cost $20,000. Subsequently, $5,000 of goods were returned by customers. Requirements: a. Prepare the journal entry
LMN Corporation sold merchandise for $30,000 on credit, which cost $20,000. Subsequently, $5,000 of goods were returned by customers. Requirements: a. Prepare the journal entry to record the sale of goods by LMN Corporation. b. Record the cost of goods sold. c. Record the return of goods by customers. d. Determine the effect on the inventory account.
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
