Journal Entries for Merchandise Transactions on Seller's and Buyer's Records-Periodic System
The following are selected transactions for Franklin, Inc., during the month of April:
April 20: Sold and shipped on account to Lind Stores merchandise for $7,400, with terms of 2/10, n/30.
April 27: Lind Stores returned defective merchandise billed at $700 on April 20.
April 29: Received from Lind Stores a check for full settlement of the April 20 transaction.
Required:
Prepare the necessary journal entries for (a) Franklin, Inc., and (b) Lind Stores. Both companies use the periodic inventory system.
Sellers journal entries:
Date | Description | Debit | Credit
Apr. 20 | Sold merchandise to Lind Stores terms 2/10, n/30 | $7,400 | $0
Apr. 27 | Merchandise returned by Lind Stores | $0 | $700
Apr. 29 | Cash | $0 | $7,400
Buyer's journal entries:
Date | Description | Debit | Credit
Apr. 20 | Merchandise received from Franklin, Inc. | $7,400 | $0
Apr. 27 | Accounts Payable | $700 | $0
Apr. 29 | Accounts Payable | $0 | $7,400
Please answer all parts of the question.