Journalize the following transactions for Alpine Audio, Inc., that occurred during the month of April. Alpine Audio’s cost of inventory is 65% of the sales price.
Apr 3 Sold $2,200 of merchandise on account, terms 5/15, n/45, FOB shipping point. Alpine Audio, Inc., prepaid $65 of shipping costs and added the amount to the customer’s invoice.
7 Issued a credit memo to the customer acknowledging the return of $225 (sales price) of unwanted goods.
16 Received payment in full from the customer for the April 3 invoice.