On October 5, Gibson Company buys merchandise on account from Quincy Company. The selling price of the

Question:

On October 5, Gibson Company buys merchandise on account from Quincy Company. The selling price of the goods is $4,700, and the cost to Quincy Company is $3,100. On October 8, Gibson returns defective goods with a selling price of $650 and a fair value of $160. Record the transactions on the books of Gibson Company.