Question
On November 3, The Golden Fish restaurant purchases 100 pounds of cod from Santos Fisheries for $500. The cost of Santos is $250. Payment terms
On November 3, The Golden Fish restaurant purchases 100 pounds of cod from Santos Fisheries for $500. The cost of Santos is $250. Payment terms are 2/10, n/30. Shipping terms are FOB Shipping Point.
On November 7, Golden Fish returns 20 pounds of fish because it is trout, not cod. Santos can resell the fish to another customer who prefers trout. Santos' cost is the same for both types of fish.
Prepare the journal entry for Golden Fish to record the return.
DR:
CR:
Prepare the journal entry for Santos Fisheries to record the return.
DR:
CR:
DR:
CR:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started