O MERCHANDISING AND INVENTORY = Merchandising: Amount received by seller with FOB Shipping... Carl 1/5 Bailey Company uses the gross method and a perpetual inventory system. Assuming the following entries, compute the amount that Bailey Company received on October 11. October 1 October 7 Sold goods costing $4,200 to Alexander Company on account, $7,000, terms 1/10, n/30. The goods are shipped FOB Shipping Point, Freight Prepaid by Seller, $130. Alexander Company returned undamaged merchandise previously purchased on account, $300. October 11 Received the amount due from Alexander Company. Amount due from Alexander Company on October $1 11: