Journalize the following transactions for Amazing Audio, Inc. that occurred during the month of November using (1) the perpetual inventory system and (2) the periodic inventory system. Omit explanations. Amazing Audio’s cost of inventory is 65% of the sales price.
Nov 3 Sold $1,600 of merchandise on account, terms 2/15, n/45, FOB shipping point. Amazing Audio, Inc. prepaid $85 of shipping costs and added the amount to the customer’s invoice.
7 Issued a credit memo to the customer acknowledging the return of $250 of damaged goods.
16 Received payment in full from the customer for the November 3 invoice: