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Suppose Bangor Hardware sells merchandise on account, terms 3/10, n/60, for $600 (the cost of the inventory is $380) on August 17, 2018. Bangor Hardware
Suppose Bangor Hardware sells merchandise on account, terms 3/10, n/60, for $600 (the cost of the inventory is $380) on August 17, 2018. Bangor Hardware later received $400 of goods (cost, $140) as sales returns on August 21, 2018. The customer paid the balance due on August 26, 2018. Journalize the August 2018 transactions for Bangor Hardware assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries. Round your answers to the nearest cent, X.XX.) Start by journalizing the revenue portion of the sale for Bangor Hardware on August 17. (Do not yet record the cost related to the sale. We will do this in the next journal entry.) Journal Entry Date Accounts Debit Credit Aug 17 Inventory Next, journalize the cost of goods sold. Journal Entry Date Accounts Debit Credit Aug 17 Journalize the revenue effect of the sale return. (Do not yet record the inventory adjustment related to the return. We will do this in the next journal entry.) Journal Entry Date Accounts Debit Credit Aug 21 Next prepare the entry for cost of goods returned Next, prepare the entry for cost of goods returned. Journal Entry Date Accounts Debit Credit Aug 21 Journalize the cash collection from the customer for Bangor Hardware. Journal Entry Date Accounts Debit Credit Aug 26
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