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The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 7 8 11 Sarasota Ltd. sold goods to Bridgeport
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 7 8 11 Sarasota Ltd. sold goods to Bridgeport Corp. for $84,300, terms n/15, FOB shipping point. The inventory had cost Sarasota $44,900. Sarasota's management expected a return rate of 3% based on prior experience. Shipping costs of $1,180 were paid by the appropriate company. Bridgeport returned unwanted merchandise to Sarasota. The returned merchandise has a sales price of $2,600, and a cost of $1,380. It was restored to inventory. Sarasota received the balance due from Bridgeport.
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