On December 28, 20Y3, Silverman Enterprises sold $19,000 of merchandise to Beasley Co. with terms 2/10, n/30. The cost of the goods sold was $11,200. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,000 and the merchandise originally cost Silverman Enterprises $2,300.

a. Journalize the entries by Silverman Enterprises to record the December 28, 20Y3 sale, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank.

20Y3 Dec. 28	Accounts Receivable-Beasley Co.	fill in the blank 433fe4f3f011fec_2	fill in the blank 433fe4f3f011fec_3
	Sales	fill in the blank 433fe4f3f011fec_5	fill in the blank 433fe4f3f011fec_6
20Y3 Dec. 28	Cost of Goods Sold	fill in the blank 433fe4f3f011fec_8	fill in the blank 433fe4f3f011fec_9
	Inventory	fill in the blank 433fe4f3f011fec_11	fill in the blank 433fe4f3f011fec_12

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Record the credit sale as well as the cost of the merchandise sold.

b. Journalize the entries by Silverman Enterprises to record the merchandise returned by Beasley Co. on January 3, 20Y4. If an amount box does not require an entry, leave it blank.

20Y4 Jan. 3	Customer Refunds Payable	fill in the blank 11ca5efe2fa1fff_2	fill in the blank 11ca5efe2fa1fff_3
	Accounts Receivable-Beasley Co.	fill in the blank 11ca5efe2fa1fff_5	fill in the blank 11ca5efe2fa1fff_6
20Y4 Jan. 3	Inventory	fill in the blank 11ca5efe2fa1fff_8	fill in the blank 11ca5efe2fa1fff_9
	Estimated Returns Inventory	fill in the blank 11ca5efe2fa1fff_11	fill in the blank 11ca5efe2fa1fff_12

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To record a customer refund, a liability account to estimate refunds that will be paid to customers is used. Depending on whether the customer has paid for the merchandise, a cash refund or credit memo will be issued.

c. Journalize the entry to record the receipt of the amount due by Beasley Co. on January 7, 20Y4. If an amount box does not require an entry, leave it blank.

20Y4 Jan. 7	Cash	fill in the blank 4484e303204bfc0_2	fill in the blank 4484e303204bfc0_3
	Accounts Receivable-Beasley Co.	fill in the blank 4484e303204bfc0_5	fill in the blank 4484e303204bfc0_6