Question
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 Martinez Ltd. sold goods to Marigold Corp. for $66,100,
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.
Dec. 3 Martinez Ltd. sold goods to Marigold Corp. for $66,100, terms n/15, FOB shipping point. The inventory had cost Martinez $35,100. Martinezs management expected a return rate of 3% based on prior experience.
Dec. 7 Shipping costs of $900 were paid by the appropriate company.
Dec 8. Marigold returned unwanted merchandise to Martinez. The returned merchandise has a sales price of $2,040, and a cost of $1,100. It was restored to inventory.
Dec 11. Martinez received the balance due from Marigold.
First 2 journal entries have 3 accounts that are affected, not 2. The remaining 4 journal entries have 2 accounts that are affected.
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