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Question
Journalize the following transactions on the books of Monroe Sales Company, assuming a perpetual inventory system is used and adjustments for customer refunds and estimated returns inventory were made at year-end. Monroe Sales Company uses the net method to record sales.
(a) On December 27, 20Y8, Monroe Sales sells $9,525 on account to Garrison Brewer with terms of 2/10, n/30. The cost of the merchandise sold was $6,905.
(b) On January 2, 20Y9, a $125 credit memo is given to Garrison Brewer due to returned merchandise. The cost of the returned merchandise was $65.
(c) On January 4, 20Y9, Garrison Brewer submits payment in full.
Answer
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