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Journal entry to record sales and cost of sales.
On 3/15, Janet's Spa purchased 90 plush robes from Randy's Spa Supplies. Randy's charged Janet's Spa $15,750 for the robes. The shipment was delivered FOB Shipping. The freight bill was for $270. Randy paid the shipper and included the amount in Janet's invoice. Credit terms offered by Randy's were 1/10, n/30. Randy's inventory records show a value of $6,480 for the robes.
1. Prepare the sales portion of the entry for this sale on Randy's books.
2. Prepare the cost of sales portion of the entry for this sale on Randy's books.
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