Question

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 10 JOURNALACCOUNTING EQUATION Score: 5/51 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Mar. 1 Salaries Expense supplies Mar. 1 After the amount due on a sale of $28,200, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund on March 1. The cost of the merchandise returned was $16,700. Required: (a) What is the amount of the refund owed to the customer? (b) Journalize the entries made by the seller to record the return and the refund. Refer to the Chart of Accounts for exact wording of account titles.

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

Answer 1

(a)	$27,636
	[28,200 - (28,200 x 2%)]
(b)
	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
	March 1	Sales Returned and Allowances		28,200				↓
		Sales Discounts			564			↑
		Cash			27,636	↓
	March 1	Merchandise Inventory		16,700		↑
		Cost of Goods Sold			16,700			↑