Question

CALCULATOR MESSAGE MY INSTRUCTOR STANDARD VIEW PRINTER VERSION BACK Exercise 18-16 (Part Level Submission) On March 10, 2017, Grouper Company sold to Barr Hardware 210 tool sets at a price of $52 each cost $31 per set) with terms of n/60, fobshipping point. Grouper allows Barr to return any unused tool sets within 60 days of purchase. Grouper estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2017. Barr returned 7 tool sets and received a credit to its account

Answer 1

Required journal entries are as prepared below:

S.No	Particulars	L.F	Debit	Credit
2017
Mar-01	Account Receivable-Grouper Company (210*52)		10920
	Sales			10920
	(for goods sold)
	Cost of goods sold (210*31)		6510
	Merchandise Inventory			6510
	(For cost of goods sold recorded)
Mar-25	Sales Return (7*52)		364
	Account Receivable -Grouper Company (7*52)			364
	(For goods returned)
	Merchandise Inventory		217
	Cost of goods sold (7*31)			217
	(For cost of goods sold reversed)