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 $10,200. 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 $3,900 and the merchandise originally cost Silverman Enterprises $2,350.

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.

	Sales
20Y3 Dec. 28

	Cost of Goods Sold

Inventory

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

	Accounts Receivable-Beasley Co.
20Y4 Jan. 3

	Inventory

Estimated Returns Inventory

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

Accounts Receivable-Beasley Co.