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Record each transaction. Assume the seller maintains a perpetual inventory. On October 1, we sell $5,000 of merchandise that cost us $3,000 terms 2/10, n/30
Record each transaction. Assume the seller maintains a perpetual inventory.
On October 1, we sell $5,000 of merchandise that cost us $3,000 terms 2/10, n/30 FOB Shipping point.
Dr. Cr.
On October 5, our customer returns $500 of merchandise (cost $300) for full credit.
On October 8, our customer pays us the full balance due, taking the discount.
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