QS $4-13($Algo$)$ Recording sales, returns, and allowances; no discounts LO P$2$

Prepare journal entries to record each of the following sales transactions of TFC Merchandising. TFC uses a perpetual

inventory system and the gross method.

May $1$ Sold merchandise for $$640,$ with credit terms $\frac{n}{60}.$ The cost of the merchandise is $$420.$

May $9$ The customer discovers slight defects in some units. TFC gives a price reduction $($allowance$)$ and credits the

customer's accounts receivable for $$44$ to compensate for the defects.

June $4$ The customer in the May $1$ sale returned $$85$ of merchandise for full credit. The merchandise, which had cost

$$54,$ is returned to inventory.

June $30$ Received payment for the amount due from the May $1$ sale less the May $9$ allowance and June $4$ return.

Sold merchandise for $$640,$ with credit terms $\frac{n}{60}.$

The cost of the merchandise is $$420.$

The customer discovers slight defects in some units. TFC

gives a price reduction $($allowance$)$ and credits the

customer's accounts receivable for $$44$ to compensate for

the defects.

$4$ The customer in the May $1$ sale returned $$85$ of

merchandise for full credit.

$5$ The merchandise, which had cost $$54,$ is returned to

inventory.

Note : $=$ journal entry has been entered