Spencer Sporting Goods Company engaged in the following transactions in April:

$$ Apr. $1$ Sold merchandise on account for $$288,000$; terms $2/10,$ n$/30,$ FOB shipping point, purchased for $$200,000.$

$$ Apr $5$ $$43,200$ of the goods sold on account on April $1$ were returned for a full credit. Payment for these goods had not yet been received. The original cost of the goods was $$30,000.$

$$ Apr $8$ A sales allowance of $$5,760$ was granted on the merchandise sold on April $1$ because the merchandise was damaged in shipment.

$$ Apr $10$ Payment was received for the net amount due from the sale of April $1.$

Apr $1$ Are we the buyer or seller in this transaction? buyer

What do terms $2/10,$ N$30$ mean? $2\%$ discount if paid within $10$ days, net amount due in $30$ days.

What does FOB Shipping Point mean? Ownership changes at the shipping point; buyer pays shipping.

Prepare the Apr $1$ entry: DEBIT CREDIT

Apr $1$

Apr $5$ What does cost of goods sold mean?

Prepare the Apr $5$ entry: DEBIT CREDIT

Apr $5$