Determine the amount of the discount for early payment

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Reference no: EM131527537

Question: 1. After the amount due on a sale of $7,500, 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 $4,500.

(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.

2. Merchandise is sold on account to a customer for $18,000, terms FOB shipping point, 3/10, n/30. The seller paid the transportation costs of $375. Determine the following:

(a) amount of the sale,

(b) amount debited to Accounts Receivable,

(d) amount due within the discount period.

Reference no: EM131527537

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