Current Attempt in Progress

On July $2,2024,$ Splish Company sold to Sue Black merchandise having a sales price of $$13,200($cost $$7,920)$ with terms of $\frac{2}{10}.$

$\frac{n}{30}.$ f$.$o$.$b$.$ shipping point. Splish estimates that merchandise with a sales value of $$750$ will be returned. An invoice totaling $$150,$

terms $\frac{n}{30},$ was received by Black on July $6$ from Pacific Delivery Service for the freight cost. Upon receipt of the goods, on July $3,$

Black notified Splish that $$350$ of merchandise contained flaws. The same day, Splish issued a credit memo covering the defective

merchandise and returned it at Splish's expense. Splish estimates the returned items to have a fair value of $$170.$ The freight cost

of $$20$ on the returned merchandise was paid by Splish on July $7.$ On July $12,$ the company received a check for the balance due

from Black.

$($a$)$

Prepare journal entries for Splish Company to record all the events noted above assuming sales and receivables are recorded

at gross selling price. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is

required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the

problem. List all debit entries before credit entries.$)$

Date Account Titles and Explanation

Debit

Credit

$($To record sales at sale price$)$

$($To record cost of goods sold at cost price$)$

$($To record cost of merchandise which contained flaws$)$

$($To record cost of goods sold at fair value$)$