Suppose Muddyriver.com sells 2,000 books on account for $19 each (cost of these books is $22,800), credit terms 1/20, n/45 on October 10, 2016, to The Salem Store. One hundred of these books (cost $1,140) were damaged in shipment, so Muddyriver.com later received the damaged goods from The Salem Store as sales returns on October 13, 2016. The Salem Store paid the balance to Muddyriver.com on October 22, 2016.
1. Journalize The Salem Stores October 2016 transactions.
2. Journalize Muddyriver.com’s October 2016 transactions.