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.

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	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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