Prepare journal entries to record each of the following sales transactions of a merchandising company....
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Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. April 1 sold merchandise for $6,200, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $3,720 April 4 The customer in the April 1 sale returned $700 of nerchandise for full credit. The merchandise, which had cost April 8 Sotd merchandise for $2,600, with credit terms of 1/10,n/30; invoice dated Aprit 8. Cost of the nerchandise is $1,820. April 11 Received payttent for the amount due from the April 1 sale less the return on April 4. 1. At year-end, Barr Company had shipped $14,300 of merchandise FOB destination to Lee Company. Which company should include the $14,300 of merchandise in transit as part of its year-end inventory? 2. Parris Company has shipped $21,800 of goods to Harlow Company, and Harlow Company has arranged to sell the goods for Parris. Identify the consignor and the consignee. Which company should include any unsold goods as part of its inventory
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