MegaCup company sells beverage supplies. The company has a return policy of 10 days from the date of sale and uses the perpetual inventory system. The following occurred during the month of November:

Nov 4 Sold merchandise for $800 on account to Java Joe, terms 2/10 , n/10. The original cost of the merchandise to Megacup was $300.

8 Java Joe return goods with a selling price of $100 and cost of $38. The goods are restored to inventory.

14 Received the correct payment form the Java Joe.

Instructions :

Prepare journal entries to record the transaction for Moca Capa Company.

Answer rating: 100% (QA)

date Account DR CR 4Nov Account receivabl... View the full answer