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12 June, 15:55

Apr. 1 sold merchandise for $3,000, with credit terms n/30; invoice dated april 1. the cost of the merchandise is $1,800. apr. 4 the customer in the april 1 sale returned $300 of merchandise for full credit. the merchandise, which had cost $180, is returned to inventory. apr. 8 sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated april 8. cost of the merchandise is $700. apr. 11 received payment for the amount due from the april 1 sale less the return on april 4.

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  1. 12 June, 16:08
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    The Journal Entry is shown below:-

    April 1

    Account receivable Dr, $3,000

    To Sales revenue $3,000

    (Being the sales on account is recorded)

    Cost of goods sold Dr, $1,800

    To Merchandise inventory $1800

    (Being cost of goods sold is recorded)

    April 4

    Sales return and allowances Dr, $300

    To Accounts receivable $300

    (Being merchandise returned is recorded)

    Merchandise inventory Dr, $180

    To Cost of goods sold $180

    (Being cost of merchandise returned is recorded)

    April 8

    Accounts receivable Dr, $1,000

    Sales revenue $1,000

    (Being sales on account is recorded)

    Cost of goods sold Dr, $700

    Merchandise inventory $700

    (Being cost of goods sold is recorded)

    April 11

    Cash $2,700

    Accounts receivable $2,700

    (Being collection on account is recorded)
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