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QUESTION 3: 30 POINTS - MERCHANDISE TRANSACTIONS JOURNALS David and Moira are owners of S.Creek's retail store. They purchase inventory from Sarcastic Stevie Inc. Below

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QUESTION 3: 30 POINTS - MERCHANDISE TRANSACTIONS JOURNALS David and Moira are owners of S.Creek's retail store. They purchase inventory from Sarcastic Stevie Inc. Below describes recent transactions between the two businesses RECORD THE JOURNAL ENTRIES FOR BOTH PARTIES. (use proper form, including memos) On November 15th Sarcastic Stevie ships S.Creek 1.000 Buttons to sell in their store for $2 each. The buttons cost Sarcastic Stevie 51 each. The terms of the sale are 3/10, N30 and FOB Shipping point. Both companies use the perpetual inventory system . On November 17th, S.Creek notifies Sarcastic Stevie that 100 of the buttons were damaged and will be returned. Stevie accepted the return. Stevie cannot sell the buttons to another customer. S. Creek pays Sarcastic Stevie the amount owed on November 22nd. On November 28th the party responsible for shipping pays the $50 freight bill directly to UPS. A) ** REQUIRED ** 12 POINTS Prepare all necessary journal entries for S. Creek's Retail Inc (the customer/buyer). Use proper form (that means memos) ** B) REQUIRED ** 15 POINTS Prepare all necessarviournal entries for Sarcastic Stevie Inc (the seller) On November 17th, S.Creek notifies Sarcastic Stevie that 100 of the buttons were damaged and will be returned. Stevie accepted the return. Stevie cannot sell the buttons to another customer. . S. Creek pays Sarcastic Stevie the amount owed on November 22nd. . On November 28th the party responsible for shipping pays the $50 freight bill directly to UPS. A) ** REQUIRED ** 12 POINTS Prepare all necessary journal entries for S. Creek's Retail Inc (the customer/buyer). Use proper form (that means memos) B) ** REQUIRED ** 15 POINTS Prepare all necessary journal entries for Sarcastic Stevie, Inc (the seller). Use proper form (and a separate sheet of paper). C) ** REQUIRED ** 3 POINTS Calculate Net Sales for Sarcastic Stevie

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