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Question
Based on the following information, 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 issues a $700 debit memo for defective merchandise that is not returned. |
| (c) | Buyer pays within the discount period. |
| Seller | Buyer | |||||
| Description | Dr. | Cr. | Description | Dr. | Cr. | |
Answer
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