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.

Question

Byron Woodard

Business

26 October, 14:35

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.

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Hugo Quinn · Answer 1

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)