Prepare the Necessary Journal Entries to Record the Following Transactions

question 126

Essay

Prepare the necessary journal entries to record the following transactions, assuming Darby Company uses a perpetual inventory system.
(a) Darby sells $50,000 of merchandise, terms 1/10, n/30. The merchandise cost $30,000.
(b) The customer in (a) returned $5,000 of merchandise to Darby. The merchandise returned cost $3,000.
(c) Darby received the balance due within the discount period.

---

Definitions:

Larger Request

In the context of persuasion, starting with a high-demand request that is likely to be rejected, followed by a smaller request.

Real Request

A genuine or sincere appeal or demand made by one party to another.

Social Commitment

A pledge or obligation to follow through with certain social behaviors or attitudes, often for the benefit of a group or community.

Self-Perception Theory

The theory that people sometimes infer their attitudes and attributes by observing their behavior and the situation in which it occurs.