Marvel Enterprises is a retail entity.On April 22 Marvel ordered 2,000 units of merchandise from...
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Marvel Enterprises is a retail entity.On April 22 Marvel ordered 2,000 units of merchandise from scussions vendor, Mission Company. The goods were listed in Mission's catalog at $16 per unit, because Mission values Marvel as a customer,Marvel was able to negotiate a 4% trade discount and payment ades terms of 2/10,n/30.Mission carries the inventory on its books at a historical cost of $12 per unit. Graw-Hill Mission fulflled the order quickly and shipped the goods on April 26FOB Shipping Point with $600 nect of freight prepaid. The goods arrived at Marvel's location on May 2 and on this date Marvel returned 200 units to Mission.Marvel paid the invoice in full on May 3rd,Select the entry below that Mission will make to record the $600 of shipping
Transportation Out (dr)$600 & Accounts Receivable(cr) $600 Transportation Out (dr)$600& Cash(cr)$600 Mission will not make an entry for the shipping OMerchandise Inventory(dr)$600 & Accounts Payable(cr)$600 Merchandise Inventory(dr)$600&Cash(cr)$600 O Accounts Receivable(dr) $600& Cash(cr) $600
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