On June 15, Palmyra Company sold merchandise for $5,200 on terms of n/30 to Lim Company. On June 20, Lim Company returned some of the
On June 15, Palmyra Company sold merchandise for $5,200 on terms of n/30 to Lim Company. On June 20, Lim Company returned some of the merchandise for a credit of $1,200, and on June 25, Lim paid the balance owed. Give Palmyra’s entries in T account form to record the sale, return, and receipt of cash under the perpetual inventory system. The cost of the merchandise sold on June 15 was $3,000, and the cost of the merchandise returned to inventory on June 20 was $700.
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