Question

Customer return and refund On December 28, 20Y3, Silverman Enterprises sold $19,500 of merchandise to Beasley Co. with terms 2/10, n/30. The cost of the goods sold was $10,100. On December 31, 20Y3, Silverman prepared its adjusting entries, yearly financial statements, and closing entries. On January 3, 20Y4, Silverman Enterprises issued Beasley Co. a credit memo for returned merchandise. The invoice amount of the returned merchandise was $4,300 and the merchandise originally cost Silverman Enterprises $2,350. a. Journalize the entries by Silverman Enterprises to record the December 28, 20Y3, sale. If an amount box does not require an entry, leave it blank.

Answer 1

Answer:

Explanation:

The journal entries are shown below:

Account receivable A/c -  Beasley Co Dr $19,110

          To Sales A/c                                                   $19,110

(Being sales is made on credit)

The net sales is computed below:

= Sales - discount in sales

= $19,500 - $19,500 × 2%

= $19,500 - $390

= $19,110

Cost of goods sold A/c Dr $10,100

         To inventory A/c                          $10,100

(Being inventory is recorded at cost)