May 1 Sold merchandise for $640, with credit terms n/60. The cost of the merchandise...
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Accounting
May 1 Sold merchandise for $640, with credit terms n/60. The cost of the merchandise is $420. May 9 The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the customers accounts receivable for $44 to compensate for the defects. June 4 The customer in the May 1 sale returned $85 of merchandise for full credit. The merchandise, which had cost $54, is returned to inventory. June 30 Received payment for the amount due from the May 1
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