Title: Business accounting ACC106

Jan. 2.Cullumber sold $14,000 of merchandise to Xiaoyan Company, terms n/30, FOB shipping point. The cost of the merchandise sold was $5,530.

4.The correct company paid freight costs of $175.

6.Xiaoyan returned $1,400 of the merchandise purchased on January 2 because it was not needed. The cost of the merchandise returned was $551, and it was restored to inventory.

Feb. 1Cullumber received the balance due from Xiaoyan.

(To record sales) (To record cost) (To record credit granted for returned goods) (To record the cost of the return)