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On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company on credit with terms of 2/10, n/30. The cost
On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company on credit with terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the gross method of accounting for sales and a periodic inventory system. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. Jepson pays the invoice on September 18 and takes the appropriate discount. The journal entry that Vander makes on September 18 is:
Cash | 5,684 | |
Sales discounts | 116 | |
Accounts receivable | 5,800 |
Cash | 5,800 | |
Accounts receivable | 5,800 |
Cash | 4,000 | |
Accounts receivable | 4,000 |
Cash | 5,684 | |
Accounts receivable | 5,684 |
Cash | 5,194 | |
Sales discounts | 106 | |
Accounts receivable | 5,300 |
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