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Noble Company sold merchandise to Fugate Company on account for $73.000 with credit terms of ?/10, n/30. The cost of the merchandise sold was $43,800.
Noble Company sold merchandise to Fugate Company on account for $73.000 with credit terms of ?/10, n/30. The cost of the merchandise sold was $43,800. During the discount period. Fugate Company returned $3,000 of merchandise and paid its account in full (minus the discount) by remitting $68,600 in cash. (a) Both companies use a perpetual inventory system. 1. Prepare the journal entries that Noble Company made to record: (1) the sale of merchandise. (2) the return of merchandise. (3) the collection on account. 2. Prepare the journal entries that Fugate Company made to record: (1) the purchase of merchandise. (2) the return of merchandise. (3) the payment on account. (b) Both companies use a periodic inventory system. 1.Prepare the journal entries that Noble Company made to record: (1) the sale of merchandise. (2) the return of merchandise. (3) the collection on account. 2. Prepare the journal entries that Fugate Company made to record: (1) the purchase of merchandise. (2) the return of merchandise. (3) the payment on account
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