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
| No: | Detail and description | Debit $ | Credit $ |
| (a) | Merchandise Inventory | 4800 | |
| Accounts Payable | 4800 | ||
| (b) | Accounts Payable | 1400 | |
| Merchandise Inventory | 1400 | ||
| (c) | Accounts Payable | 3400 | |
| Cash | 3367 | ||
| Merchandise Inventory | 33 |
Darshita Changed status to publish February 17, 2020
