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Hunt Company Sold To Ann Mount Merchandise Having A Sales Price Of $8,000

Submitted by • October 9, 2018

Sales recorded both gross and net) On June 3, Hunt Company sold to Ann Mount merchandise having a sales price of $8,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $120, terms n/30, was received by Mount on June 8 from the Olympic Transport Service for the freight cost. Upon receipt of the goods, June 5, Mount notified Hunt Company that merchandise costing $600 contained flaws that rendered it worthless. The same day, Hunt Company issued a credit memo covering the worthless merchandise and asked that it be returned at company expense. The freight on the returned merchandise was $24, paid by Hunt Company on June 7. One June 12, the company received a check for the balance due from Mount.1. Prepare journal entries for Hunt Company to record all the events noted above under each of the following bases.- Sales and receivables are entered at gross selling price.- Sales and receivables are entered net of cash discounts. Prepare this as stated in the problem, and show

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Voted by Simon Brooke

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