Question

On September 12, Vander Company sold merchandise in the amount of $4,600 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $3,175. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $400 and the cost of the merchandise returned is $280. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is:

Answer 1

Answer:

Dr Cash 4,116

Dr Sales discounts 84

Cr Accounts receivable 4,200

Explanation:

Vander Company Journal entry

Dr Cash 4,116

(4,200-82)

Dr Sales discounts 84

Cr Accounts receivable 4,200

Calculation of Sales discounts

4,200*2%

=84

Merchandise

(4,600-400)

=4,200