Revised Fall 2012 - Harper College
$200 of merchandise purchased is returned by the customer prior to payment: Sales returns and Allowances 200 Cash 200 Merchandise Inventory 160 Cost of Goods Sold 160 Example 2: $800 of inventory is sold on account, FOB shipping point. The seller pays $100 to the shipping company on behalf of the buyer, which is added to the seller’s invoice.
Download Revised Fall 2012 - Harper College
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