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Based on the Information Below, Journalize the Entries for the Seller

Question 197

Essay

Based on the information below, journalize the entries for the seller and the buyer. Both use a perpetual inventory system.(a)Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point. The cost of the merchandise is $2,850. The seller prepays the freight of $75.(b)Buyer returns $700 of merchandise as defective. The cost of the merchandise is $420.(c)Buyer pays within the discount period. Based on the information below, journalize the entries for the seller and the buyer. Both use a perpetual inventory system.(a)Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point. The cost of the merchandise is $2,850. The seller prepays the freight of $75.(b)Buyer returns $700 of merchandise as defective. The cost of the merchandise is $420.(c)Buyer pays within the discount period.

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