1. The following are transactions of the Morrison Company:

a. November 5: sold merchandise on account for $46,000 with terms of 3/15, n/30.

b. November 20: payment was received on $32,000 worth of merchandise sold on November 5.

c. December 5: further collections were made on $8,000 of merchandise sold on November 5.

d. December 8: merchandise sold for $4,000 on November 5 was returned by the purchaser and credit was granted by Morrison Company.

Required:

Record the appropriate amounts under the gross price and net price methods in the spaces below. For each method, write the amount to be debited or credited on the appropriate line for each account shown. Indicate that the amount is a debit or credit by placing a (d) or (c) after the amount.

Answer rating: 100% (QA)

a To record sale on Nov 5 Gross Price Method Net Price Method Cash Accounts Rece... View the full answer