Credit sale, return, then payment within the discount period
Transaction
On May 1 a wholesaler sold merchandise on account for $8,000.00, terms 2/10, n/30. On May 4 the customer returned merchandise with a sales price of $1,500.00, and the wholesaler issued a credit memo. On May 9 the customer pays the balance in cash and takes the discount. Record the May 9 entry.
Assumptions: The sale and the return were recorded when they happened (gross method). The discount applies to the balance after the return. No sales tax applies.
Accounts
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Debit
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Credit
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