question archive Towbin Products sells merchandise on credit for $7,000 on December 1, 2016
Towbin Products sells merchandise on credit for $7,000 on December 1, 2016
Subject:BusinessPrice:2.88 Bought3
Towbin Products sells merchandise on credit for $7,000 on December 1, 2016. Towbin estimates that returns and allowances will amount to 4% of sales. On December 22, 2016, a customer returns for credit merchandise originally sold on December 1 for $200.
Prepare the journal entries to record the preceding sale and the return of merchandise.
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The journal entries to record the preceding sale and the return of merchandise are made below:
Explanation:
| Date | General Journal | Debit | Credit |
| Dec. 1, 2016. | Accounts receivable | $7,000 | |
| Sales revenue | $7,000 | ||
| Dec. 22, 2016. | Sales returns and allowances | $200 | |
| Accounts receivable | $200 |
