Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of $100. Prior to payment, $1,600 of the merchandise is returned. The invoice is paid within the discount period.

Required:

Record the foregoing transactions of the buyer in the sequence indicated below, assuming a perpetual inventory system is used.

(a)

Purchased the merchandise on December 21.*

(b)

Recorded receipt of the credit memo for merchandise returned on December 28.*

(c)

Paid the amount owed on December 31.*

*Refer to the Chart of Accounts for exact wording of account titles.

Record each transaction of the buyer in the sequence. Refer to the Chart of Accounts for exact wording of account titles.

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