Sabor Company, Inc. uses the gross method of accounting for purchases and a perpetual inventory system. It purchased $17,800 of merchandise on April 7 with credit terms of 1/10, n/30. Merchandise with a cost of $1,800 was damaged and returned to the seller on April 10. On April 16 the company paid the amount due. Prepare the journal entries to record the transactions on all three dates.

Question

Quizplus · Accepted Answer

The Answer of Sabor Company, Inc. uses the gross method of accounting for purchases and a perpetual inventory system. It purchased $17,800 of merchandise on April 7 with credit terms of 1/10, n/30. Merchandise with a cost of $1,800 was damaged and returned to the seller on April 10. On April 16 the company paid the amount due. Prepare the journal entries to record the transactions on all three dates.