Business, 17.04.2020 05:27 zarrialamons16

After the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was $ 16,800.

What is the amount of the refund owed to the customer? $
Journalize the entries made by the seller to record (A) the refund and ( B) the return of merchandise.
A. Sales Returned and Allowances Sales Discounts Cash

B. Merchandise Inventory Cost of Merchandise Sold

Answers: 3

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Answers

Answer from: mikemurray115

Please see explanation column for answers

Explanation:

A) Amount refund owed to customer=

Sale of item - discount on item

=$28000- ($28000 x 2%) = $27,440

B)Journal of the entries made by the seller to record refund

Dr Sales Returned and allowances - $28,000

Cr Sales Discount $560

Cr Cash $27,440

c) Journal of the entries made by the seller to record return of merchandise

Cr Merchandise Inventory-$16,800

Dr Cost of Merchandise Sold -$16,800

Answer from: asdf334asdf334

The amount of refund owed to customer is the amount of cash $27,440 received from the customer.

Dr sales returned and allowances $28,000

Cr Cash $27,440

Cr sales discount $560

Return of merchandise:

Dr merchandise inventory $16,800

Cr Cost of merchandise sold $16,800

Explanation:

The entries passed initially that need to be reversed now are:

The discount on the sale is 2% of $28,000=$560 debit to sales discount

Cash received from the customer =$28000-$560=$27,440 debit to cash account

Actual amount debited to sales is $28,000 credit to sales account

Upon return of the merchandise,the merchandise inventory is debited and cost of merchandise sold is credited with cost of merchandise at $16,800

Answer from: Quest

Z-gadgets has developed a mini-laptop that will be marketed in developing countries. it is estimated that the requirement for the new product will start out slow and accelerate as the product becomes increasingly familiar to worldwide consumers. to begin to staff the new production facilities, the company should conduct a(n): demand forecast

Answer from: Quest

E. all of the above

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