The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.

Dec.	3		Blue Spruce Ltd. sold goods to Swifty Corp. for $77,800, terms n/15, FOB shipping point. The inventory had cost Blue Spruce $41,400. Blue Spruces management expected a return rate of 3% based on prior experience.
	7		Shipping costs of $1,080 were paid by the appropriate company.
	8		Swifty returned unwanted merchandise to Blue Spruce. The returned merchandise has a sales price of $2,400, and a cost of $1,280. It was restored to inventory.
	11		Blue Spruce received the balance due from Swifty.

Can you help solve part b?

(a) Your Answer Correct Answer Your answer is correct. Record the above transactions in the books of Blue Spruce. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to the nearest whole dollar, eg. 5,275.) Debit Credit Date Dec 3 Account Titles and Explanation Accounts Receivable 77800 Sales 75466 2334 Refund Liability (To record credit sale) Cost of Goods Sold Dec. 3 40158 Estimated Inventory Returns 1242 41400 Inventory (To record cost of merchandise sold) Dec, 7 V No Entry 0 No Entry Dec. 8 Refund Liability 2.400 2.400 Accounts Receivable (To record return of goods) Inventory Dec. 8 1,280 1,280 Estimated Inventory Returns (To record cost of merchandise returned) Cash Dec. 11 75400 Accounts Receivable 75400 e Textbook and Media Assistance Used Solution Attempts: 3 of 3 used (b) Record the above transactions in the books of Swifty. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to the nearest whole dollar, eg. 5,275.) Date Account Titles and Explanation Debit Credit