3) Prepare ABC Cos journal entries for each of the following transactions Assume that a perpetual inventory method is used. Merchandise a. ABC Co. purchases S16 inventory on account, terms 3/10 net 30 from Sampson Company. lb. Co returns $1,800 of inventory to Sampson from the initial purchase. C. ABC Co. pays the balance owed to Sampson Company, taking the discount. Recording Sales of Merchandise (new scenario) d. ABC Co. sells merchandise on account for $7,600 (terms 2/10 net 30) to Blue Co. The merchandise had cost ABC Co. $3,750. e. Blue Co. returns $500 of the merchandise to ABC Co Assume this returned merchandise had cost ABC Co. $300. f Blue Co. pays ABC Co. the balance owed within 10 days of the sale.
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Prepare ABC Co’s journal entries for each of the following transactions. Assume that a perpetual inventory method is used. ABC Co. purchases $16 inventory on account, terms 3/10 net 30 from Sampson Company. ABC Co. returns $1, 800 of inventory to Sampson from the initial purchase. ABC Co. pays the balance owed to Sampson Company, taking the discount. Recording Sales of Merchandise (new scenario) ABC Co. sells merchandise on account for $7, 600 (terms 2/10 net 30) to Blue Co. The merchandise had cost ABC Co. $3, 750. Blue Co. returns $500 of the merchandise to ABC Co. Assume this returned merchandise had cost ABC Co. $300. Blue Co. pays ABC Co. the balance owed within 10 days of the sale