91Ó°ÊÓ

After the amount due on a sale of \(\$ 18,500\), terms \(2 / 10, \mathrm{n} / \mathrm{eom}\), is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was \(\$ 11,100\). (a) What is the amount of the refund owed to the customer? (b) Journalize the entries made by the seller to record the return and the refund.

Madamé Co., a women's clothing store, purchased \(\$ 10,000\) of merchandise from a supplier on account, terms \(\mathrm{FOB}\) destination, \(2 / 10, \mathrm{n} / 30\). Madamé Co. returned \(\$ 2,500\) of the merchandise, receiving a credit memorandum, and then paid the amount due within the discount period. Journalize Madamé Co.'s entries to record (a) the purchase, (b) the merchandise return, and (c) the payment.