Pitt Co., a furniture wholesaler using the perpetual method to record inventory, sells merchandise to Jeevan Co. on account, $25,600, terms 2/10, n/30. The cost of the goods sold is $14,000. Pitt Co. issues a credit memo for $4,000 for merchandise returned and subsequently receives the amount due within the discount period. The cost of the merchandise returned is $2,000. Journalize Pitt Co.’s entries for
(a) The sale, including the cost of the goods sold,
(b) The credit memo, including the cost of the returned merchandise,
(c) The receipt of the cheque for the amount due from Jeevan Co.

  • CreatedSeptember 15, 2015
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