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The following merchandise transactions occurred in the month. Both companies use a perpetual inventory system. 3-May-22 Mickey sold goods to Minnie for $18,000, terms 1/10,
The following merchandise transactions occurred in the month. Both companies use a perpetual inventory system. 3-May-22 Mickey sold goods to Minnie for $18,000, terms 1/10, n/30, FOB shipping point. The inventory cost Mickey $12,000 7-May-22 Shipping costs of $1900 were paid by the appropriate company 8-May-22 Minnie returned unwanted merchandise to Mickey. The returned merchandise had a sales price of $4,100 and cost of $2,150. It was restored to inventory. 15-May-22 Mickey received the balance due from Minnie a) Prepare journal entries for the above transactions in the books of Minnie. If no entry is required state this and the reason WHY. No JE explanations required. Part B What is the discount in $ Minnie would receive if it paid within the stated terms? What is the last date that Minnie could pay to qualify for the discount? 15-May If Minnie does not pay soon enough to receive a discount, how long in days does the company have to pay? 10 days
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