Question

1. A company sales 1,000 units of merchandise for $10/unit with a cost of $4/unit on September 1 with terms of 1/10, n/15. On September 7, the customer returns 300 units. On September 13^th, the customer pays the outstanding balance remaining, taking any discount being offered. What are the journal entries for September 1^st, September 7^th, and September 13^th transactions?

Answer 1

		Journal entries(perpectual) assuming Net method being adopted
	Date	Account titles and explanation	Debit	Credit
	01-Sep	Account receivable	$9,900		(1000*10*99%)
		Sales		$9,900
		(sales recorded)
	01-Sep	Cost of goods sold	$4,000
		Inventory		$4,000
		(COGS recorded)
	07-Sep	Sales return	$2,970		(300*10*99%)
		Account receivable		$2,970
		(sales return)
	07-Sep	Inventory	$1,200
		Cost of goods sold		$1,200
		(sales return)
	13-Sep	Cash	$6,930
		Account receivable		$6,930
		(Cash received)