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On June 3, 2017, Riverbed Company sold to Ann Mount merchandise having a sales price of $8,600 (cost $6,020) with terms of n/60, f.o.b. shipping
On June 3, 2017, Riverbed Company sold to Ann Mount merchandise having a sales price of $8,600 (cost $6,020) with terms of n/60, f.o.b. shipping point. Riverbed estimates that merchandise with a sales value of $860 will be returned. An invoice totaling $100 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Riverbed $300 of merchandise containing flaws. Riverbed estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $26, paid by Riverbed on June 8. On July 16, the company received a check for the balance due from Mount. Prepare journal entries for Riverbed Company to record all the events in June and July. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select "No entry" for the account titles and enter O for the amounts.) DateAccount Titles and Explanation Debit Credit Accounts Receivable Sales Revenue To record sales) Cost of Goods Sold Inventory To record cost of goods sold) Allowance for Sales Returns and Allowances Accounts Receivable To record sales returns) Cash (To record cost of goods returned) To record the freight cost)
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