I need help! I got most of it but now I\'m stumped! I am missing a couple of acc
ID: 2499938 • Letter: I
Question
I need help! I got most of it but now I'm stumped! I am missing a couple of account titles that I can't figure out and the second entry I can't get at all! TIA
On June 3, 2014, Hunt Company sold to Ann Mount merchandise having a sales price of $8,240 (cost $5,768) with terms of 2/10, n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales value of $824 will be returned. An invoice totaling $124, terms n/30, was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 5, Mount notified Hunt that $309 of merchandise contained flaws. The same day, Hunt issued a credit memo covering the defective merchandise and asked that it be returned at Hunt’s expense. Hunt estimates the returned items to have a fair value of $124. The freight on the returned merchandise was $25, paid by Hunt on June 7. On June 12, the company received a check for the balance due from Mount.
Explanation / Answer
Cost of goods sold 5,191
Estimated inventory return 577
To Inventory 5,768
Refund liability 124
To Estimated inventory return 124
Freight outward 25
To Cash 25
No entry required on August 5, 2014