Journalize the following merchandise transactions:
a. Sold merchandise on account, $92,500 with terms 1/10, n/30. The cost of the merchandise sold was $55,500.
b. Received payment less the discount.
c. Issued a credit memo for returned merchandise that was sold for $10,400 terms n/30.
The cost of the merchandise returned was $6,500.
Answer:
a. Accounts Receivable [$92,500 – ($92,500 × 1%)] 91,575 Sales 91,575 Cost of Merchandise Sold 55,500 Merchandise Inventory 55,500 b. Cash 91,575 Accounts Receivable 91,575
c. Customer Refunds Payable 10,400 Accounts Receivable 10,400 Merchandise Inventory 6,500 Estimated Returns Inventory 6,500