Q.1

Q.2

The company estimates sales returns at the end of each month. On April 5, purchased merchandise from Morris for $23,000, terms 2/10, net/30. FOB shipping point. On April 6, paid freight costs of $900 on merchandise purchased from Morris. On April 8, returned damaged merchandise to Morris and was granted a $3,000 credit for returned merchandise. On April 15, paid the amount due to Morris Company in full. 1. 2. 3 4 5 On December 3, Sayid sold $570,000 of merchandise to Shephard, terms 2/10, n/30. FOB Shipping Point. The cost of the merchandise sold was $350,000. On December 13, Sayid Company received the balance due from Shephard Co. 1 On December 15, Sayid Company sold $50,000 of merchandise to Fred, terms n/30. FOB g On December 20, Fred returned $10,000 of merchandise to Sayid (wrong color). The cost of the 4 On December 31, estimated sales returns (from December sales) of $25,000; cost of 15,000. Shipping Point. The cost of the merchandise sold was $30,000. merchandise was $6,000. The company estimates sales returns at the end of each month. On April 5, purchased merchandise from Morris for $23,000, terms 2/10, net/30. FOB shipping point. On April 6, paid freight costs of $900 on merchandise purchased from Morris. On April 8, returned damaged merchandise to Morris and was granted a $3,000 credit for returned merchandise. On April 15, paid the amount due to Morris Company in full. 1. 2. 3 4 5 On December 3, Sayid sold $570,000 of merchandise to Shephard, terms 2/10, n/30. FOB Shipping Point. The cost of the merchandise sold was $350,000. On December 13, Sayid Company received the balance due from Shephard Co. 1 On December 15, Sayid Company sold $50,000 of merchandise to Fred, terms n/30. FOB g On December 20, Fred returned $10,000 of merchandise to Sayid (wrong color). The cost of the 4 On December 31, estimated sales returns (from December sales) of $25,000; cost of 15,000. Shipping Point. The cost of the merchandise sold was $30,000. merchandise was $6,000