Question
The following merchandise transactions occurred during December for two different companies: Rippen and Burnen. Both companies use a perpetual inventory system. On December 3, Rippen
The following merchandise transactions occurred during December for two different companies: Rippen and Burnen. Both companies use a perpetual inventory system. On December 3, Rippen Corporation sold merchandise on account to Burnen Corp. for $490,000, terms 2/10, n/30. This merchandise originally cost Rippen $319,000. On December 8, Burnen Corp. returned merchandise to Rippen Corporation for a credit of $4,600. Rippen returned this merchandise to inventory at its original cost of $2,995. December 12, Burnen Corp. paid Rippen Corporation for the amount owed.
Required: (a) Prepare the journal entries to record these transactions on the books of Rippen Corporation. (Omit the "$" sign in your response.)
(b) | What is the amount of net sales to be reported on Rippen Corporation's income statement? (Omit the "$" sign in your response.)
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