Based on the information below, illustrate the effects on the accounts and financial statements of the Seller and the Buyer.Both use a perpetual inventory system.
(a)Seller sells Buyer on account merchandise costing $300 for $500, terms 2/10, net 30, FOB destination.The transportation charge is $50.
(b)Buyer returns as defective $100 worth of the $500 merchandise received.The seller's cost is $60.
(c)Buyer pays within the discount period.
Definitions:
Apothecary System
An older system of measurement that includes units such as fluid ounces, fluid drams, pints, and quarts.
Metric System
A decimal system of measurement based on the meter, liter, and gram as units of length, capacity, and weight or mass, respectively.
Fluid Dram
A unit of volume in the apothecaries' system, equivalent to 1/8 of a fluid ounce.
Metric Equivalent
Metric equivalent is the corresponding value of a measurement expressed within the metric system, used for converting units like inches to centimeters.
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