Refer to QS and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used.
In QS, Prepare journal entries to record each of the following sales transactions of a merchandising company.
Show supporting calculations and assume a perpetual inventory system.
Apr. 1 Sold merchandise for $5,000, granting the customer terms of 2/10, EOM; invoice dated April1.
The cost of the merchandise is $3,000.
Apr. 4 The customer in the April 1 sale returned merchandise and received credit for $1,000. The merchandise, which had cost $600, is returned to inventory.
Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.