Answer Happy

The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Flounder Ltd. sold goods to Novak Corp. for $70,000, terms r/15, FOB shipping point. The inventory had cost Flounder $37,200. Flounder's management expected a return rate of 3% based on prior experience. Shipping costs of $960 were paid by the appropriate company. Dec. 3 7 8 11 Novak returned unwanted merchandise to Flounder. The returned merchandise has a sales price of $2,160, and a cost of $1.160. It was restored to inventory. Flounder received the balance due from Novak.

(a) Record the above transactions in the books of Flounder. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to the nearest whole dollar, e.g. 5,275.) Account Titles and Explanation Date (To record credit sale) (To record cost of merchandise sold) Debit Credit

(To record return of goods) womey (To record cost of merchandise returned) eTextbook and Media I Assistance Ilsed