Cash
(5) 13,860 |
Sales
(1) 14,850
Cost of Merchandise Sold
(2) 8,800
Answer:
(1) Sold merchandise on account for $14,850, $15,000 less discount of 1%.
(2) Recorded the cost of the merchandise sold and reduced the merchandise inventory account, $8,800.
(3) Accepted a return of merchandise of $1,000 and issued a credit memo of $990, which is $1,000 less the 1% discount.
(4) Updated the merchandise inventory account for the cost of the merchandise returned, $575.
(5) Received the balance due within the discount period of $13,860; sale of $14,850 less the return of $990.