Question
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec 3 - Grouper Ltd. sold goods to Monty Corp. for
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec 3 - Grouper Ltd. sold goods to Monty Corp. for $68,700, terms n/15, FOB shipping point. The inventory had cost Grouper $36,500. Grouper's management expected a return rate of 3% based on prior experience.
Dec 7- Shipping costs of $940 were paid by the appropriate company.
Dec 8 - Monty returned unwanted merchandise to Grouper. The returned merchandise has a sales price of $2,120, and a cost of $1,140. It was restored to inventory.
Dec 11 - Grouper received the balance due from Monty.
Record the following transactions in the books of GROUPER.
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