Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of $100. Prior to payment, $1,600 of the merchandise is returned. The invoice is paid within the discount period. Record the foregoing transactions of the buyer in the sequence indicated below, assuming a perpetual inventory system is used.

(a) Purchased the merchandise.

(b) Recorded receipt of the credit memo for merchandise returned.

(c) Paid the amount owed.

Answer rating: 100% (QA)

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