On August 1, Marcus Ltd. sold merchandise on account to Bethesda Inc. for $32,000, net 30. Marcus acquired this merchandise inventory at a cost of $17,500. Marcus has a stated return policy of 10 days from the date of sale and estimates that returns will be 5% of sales. On August 10, Bethesda returned merchandise with a sales price of $1,600 and a cost of $ 875. The goods were returned to inventory. On June 30, Marcus received payment from Bethesda for the balance due.

Instructions Prepare journal entries to record the transactions for Marcus under a perpetual inventory system using the contract-based approach. (round all amounts to the nearest dollar)

Answer rating: 100% (QA)

Here are the journal entries August 1 2022 Accounts Rece... View the full answer