A Company Purchase Merchandise for $9,000 on Credit Terms 2/10

question 165

Essay

A company purchase merchandise for $9,000 on credit terms 2/10, n/30, on May 8, 2001 before payment of the invoice, the company returned one-third of the goods for credit because they were damaged in shipment. Give the preferable entry for the return, assuming a periodic inventory system is used by the company.

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Definitions:

Center

The midpoint or central point of a geometric shape or object.

Vertices

The points where two or more edges meet in a geometric shape or graph.

Center

The midpoint or origin in a coordinate system; also refers to the midpoint of a shape or object in geometry.

Method of Substitution

A technique used to solve systems of equations by solving one equation for one variable and then substituting that expression into the other equation(s).