Prepare the Necessary Journal Entries to Record the Following Transactions

question 165

Essay

Prepare the necessary journal entries to record the following transactions, assuming Eustace Company uses a perpetual inventory system.
(a) Eustace sells $45,000 of merchandise, terms 1/10, n/30. The merchandise cost $30,000.
(b) The customer in (a) returned $4,000 of merchandise to Eustace. The merchandise returned cost $2,400.
(c) Eustace received the balance due within the discount period.

---

Definitions:

Social Accord

A general agreement or harmony among members of a community or society, often leading to peaceful and cooperative relationships.

Moral Development

The process by which individuals grow in their understanding of morals and ethics, often through stages that reflect their capacity for moral reasoning.

Conventional

Adhering to traditional standards or norms; typical or expected within a certain context.

Ethical Dilemma

A situation in which a difficult choice has to be made between two or more actions, where none of the options resolve the ethical principles or standards at stake fully.