On July 18, 2022, Taylor Swift sold merchandise to Dianne Ross for P240,000 list price. Terms: 10%,5% 2/10, 1/15, n/30. The shipping cost on the date of sale was P5,000 with terms: FOB Shipping point, freight collect. Upon inspection of the goods received on July 21, a total of P16,000 (list price) were returned and the additional freight cost of P800 was incurred and paid by the Ms. Ross. On July 26, Ms. Ross paid the account to avail of the discount? Use the periodic inventory system. What was the entry reflected in the books of Taylor Swift on February 20 to record the returned merchandise?

Answer rating: 100% (QA)

The discount for paying within 10 days is 210 x P240000 P48000 So the am... View the full answer