Journalize the following merchandise transactions:
a. Sold merchandise on account, $72,500 with terms 2/10, n/30. The cost of the merchandise sold was $43,500.
b. Received payment less the discount.
c. Issued a credit memo for returned merchandise that was sold for $2,300 terms n/30.
The cost of the merchandise returned was $1,600.
Answer:
a. Accounts Receivable [$72,500 – ($72,500 × 2%)] 71,050 Sales 71,050 Cost of Merchandise Sold 43,500 Merchandise Inventory 43,500 b. Cash 71,050 Accounts Receivable 71,050 c. Customer Refunds Payable 2,300 Accounts Receivable 2,300 Merchandise Inventory 1,600 Estimated Returns Inventory 1,600