Using the data presented in Exercise 5-15, journalize Jeevan Co.’s entries for
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 purchase,
(b) The return of the merchandise for credit,
(c) The payment of the invoice within the discount period. Jeevan also uses the perpetual method.