Merchandise with a list price of $4,200 and costing $2,300 is sold on account,subject to the following terms: FOB destination,2/10,n/30.The seller prepays the freight costs of $85
(debit Delivery Expense for the freight costs).Prior to payment for the goods,the seller issues a credit memo for $750 to the customer for merchandise costing $425 that is returned.Payment is received within the discount period.The company uses a perpetual inventory system.Record the foregoing transactions of the seller in the sequence indicated below.

Question

Merchandise with a list price of $4,200 and costing $2,300 is sold on account,subject to the following terms: FOB destination,2/10,n/30.The seller prepays the freight costs of $85 
(debit Delivery Expense for the freight costs).Prior to payment for the goods,the seller issues a credit memo for $750 to the customer for merchandise costing $425 that is returned.Payment is received within the discount period.The company uses a perpetual inventory system.Record the foregoing transactions of the seller in the sequence indicated below.

Quizplus · Accepted Answer

The Answer of Merchandise with a list price of $4,200 and costing $2,300 is sold on account,subject to the following terms: FOB destination,2/10,n/30.The seller prepays the freight costs of $85 
(debit Delivery Expense for the freight costs).Prior to payment for the goods,the seller issues a credit memo for $750 to the customer for merchandise costing $425 that is returned.Payment is received within the discount period.The company uses a perpetual inventory system.Record the foregoing transactions of the seller in the sequence indicated below.

Merchandise with a List Price of $4,200 and Costing $2,300