Question

Journalize the following transactions for Henderson Company. 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.

May 3 Sold goods costing $7,800 to Ward Company for cash, $13,000.
May 9 Ward Company returned undamaged merchandise, purchased on May 3, for a cash refund, $960.

Answer 1

Answer: See explanation

Step-by-step explanation:

Merchandise inventory are goods which a wholesaler or distributor has gotten from the suppliers in order to sell to third parties.

On May 9, merchandise inventory was calculated as:

= 960 ÷ 13000 × 7800

= 576

Check the attached file for further explanation