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will pay within the discom Juul til alle believes that all companies thin the discount period. Additionally, Carrie allows a 90-day return nrivilege for hany, came allows a 90-day return privilege for the mer- dise it sells. At year-end, Carrie estimates sales of $1,200,000 (with a cost to Ca are still within the 90-day return period. From past experience, 6 percent of this merchan- enected to be returned. Prepare the period-end adjusting journal entries needed for Carrie to comply with the revenue recognition standard. Carrie Corporation's fiscal year-end is remain that are still within the 90-0 Corporation to comply with the res December 31. PROBLEMS-SET A LO2, 3 Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System The following transactions occurred between the Decker Company and Mann Stores, Inc., during March: Mar. 8 Decker sold $14,000 worth of merchandise ($9,600 cost) to Mann Stores with terms of 2/10, n/30. 10 Mann Stores paid freight charges on the shipment from Decker Company, $500. 12 Mann Stores returned $2,000 of the merchandise ($1,600 cost) shipped on March 8. 17 Decker received full payment for the net amount due from the March 8 sale. 20 Mann Stores returned goods that had been billed originally at $800 ($600 cost). Decker issued a check for $784

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