Task (B) Merchandising Activities (24 points) Korab Nutrition sold merchandise for $2,500 which cost them...
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Accounting
Task (B) Merchandising Activities (24 points)
Korab Nutrition sold merchandise for $2,500 which cost them $970 on account. The customer was dissatisfied with some of the goods and returned $450 worth (sales price) and received a cash refund. Instructions:
(a) What Journal Entries should Korab Nutrition enter at the time sold and at the time of the return? Assume that Korab Nutrition uses a Perpetual Inventory System.
Date
Account Titles
Debit
Credit
At time of Sale
At time of Return
(b) If Korab Nutrition uses a Periodic Inventory System, what entries should be made?
Date
Account Titles
Debit
Credit
At time of Sale
At time of Return
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