Recording Sales Transactions-Periodic Inventory Method
Response to the following problem:
On June 24, 2009, Mowen Company sold merchandise to Jack Simpson for $80,000 with terms 2/10, n/30. On June 30, Simpson paid $39,200, receiving the cash discount on his payment, and returned $16,000 of merchandise, claiming that it did not meet contract terms
Assuming that Mowen Company uses the periodic inventory method, record the necessary journal entries on June 24 and June 30.