On September 1, Serrano Company Purchased 70 Units of Product

question 145

Essay

On September 1, Serrano Company purchased 70 units of Product A for $35,000 cash and also paid $1,500 transportation costs related to this purchase. On the same date, Serrano Company purchased 100 units of Product B for $10,000 on credit; however, the seller paid the $1,200 freight. The credit terms for Product B were 2/10, n/30. On September 3rd, Serrano Company determined that 5 units of Product A were defective, so they were returned to the seller. Serrano Company paid for its purchase of Product B on September 9th. On September 10th, Serrano Company purchased 90 units of Product C for $8,000 on credit with terms 1/10, n/30. The seller paid the freight. Serrano Company paid for its purchase of Product C on September 21st.
-Refer to the information presented for Serrano Company. On September 12th, Serrano Company sold 10 units of Product B to customers for $180 each. Serrano Company had paid $100 for each unit of Product B when it purchased them from the supplier on September 1st. On September 15th, customers returned 2 units of Product B for a cash refund.
Record the journal entries for this sale and sales return assuming the company uses a periodic inventory system.

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Definitions:

Appraisal Rights

Legal rights enabling shareholders to have their shares independently valued, often in the context of mergers or acquisitions.

Dissenting Shareholders

Shareholders who disagree with certain corporate actions, such as mergers, and have rights that can protect their interests, including the right to receive fair payment for their shares.

Monetary Compensation

Financial payment made to compensate for loss, injury, or suffering.

Right to Vote

The entitlement of individuals to participate in the election of government officials and in making decisions in referendums.