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Question
Journalize the following transactions assuming the perpetual inventory system and adjustments for customer refunds and estimated returns inventory were made at year-end. The company uses the net method to record sales.
| Dec. 27 | Sold merchandise on account for $3,750, terms n/15. The cost of the merchandise sold was $2,000. |
| Jan. 5 | Issued credit memo for $1,050 for merchandise returned from sale on December 27. |
| The cost of the merchandise returned was $610. | |
| 6 | Received check for the amount due for sale on December 27 less return on January 5. |
| 8 | Sold merchandise for $7,000 plus 6% sales tax to cash retail customers. The cost of the merchandise sold was $3,830. |
Answer
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