Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of $100. Prior to payment, $1,400 of the merchandise is returned. The correct amount is paid within the discount period.
Record the foregoing transactions of the buyer in the sequence indicated below, assuming a perpetual inventory system is used.
| (a) | Purchased the merchandise. |
| (b) | Recorded receipt of the credit memo for merchandise returned. |
| (c) | Paid the amount owed. |
Darshita Changed status to publish February 17, 2020
