Problem - Journalize the following transactions for Foster Company using the gross method of accounting for sales discounts. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction.
June 1 Sold goods costing $5,220 to Ward Company on account $8,700 terms 4/10, n/30.
June 7 Ward Company was granted an allowance of $2,175 for returned merchandise that was previously purchased on account. The returned Goods are in perfect condition.
June 11 Received the amount due from Ward Company.