AC 230 WEEK 1 Exercise 18A 7

AC 230 WEEK 1 Exercise 18A 7
On June 3 2014 Hunt Company sold to Ann Mount merchandise having a sales price of $9360 cost $6552 with terms of 2/10, n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales value of $936 will be returned. An invoice totaling $140, 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 $351 of merchandise contained flaws. The same day, Hunt issued a credit memo covering the defective merchandise and asked that it be returned at Hunt- expense. Hunt estimates the returned items to have a fair value of $140. The freight on the returned merchandise was $28, paid by Hunt on June 7. On June 12, the company received a check for the balance due from Mount.

Prepare journal entries for Hunt Company to record all the events noted above assuming sales and receivables are entered at gross selling price. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
Date	Account Titles and Explanation	Debit	Credit
June 3, 2014	  
  
  

	  
  
  

	  
  
  

	(To record sale)		
	  
  
  

	  
  
  

	  
  
  

	(To record cost of goods sold)		
June 5, 2014	  
  
  

	  
  
  

	(To record Refund Liability)		
	  
  
  

	  
  
  

	(To record Estimated Inventory Returns)		
June 7, 2014	  
  
  

	  
  
  

	(To record delivery cost)		
June 12, 2014	  
  
  

	  
  
  

	  
  
  

	(To record payment)		

Prepare the journal entry assuming that Ann Mount did not remit payment until August 5. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
Date	Account Titles and Explanation	Debit	Credit
August 5, 2014