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The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 Whispering Winds Ltd. sold goods to Ayayai Corp.
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 Whispering Winds Ltd. sold goods to Ayayai Corp. for $54,400, terms n/15, FOB shipping point. The inventory had cost Whispering Winds $28,800. Whispering Winds's management expected a return rate of 3% based on prior experience. 7 Shipping costs of $720 were paid by the appropriate company. 8 11 Ayayai returned unwanted merchandise to Whispering Winds. The returned merchandise has a sales price of $1,680, and a cost of $920. It was restored to inventory. Whispering Winds received the balance due from Ayayai. Date Account Titles and Explanation Debit Credit
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