Sampson Co. sold merchandise to Batson Co. on account, $38,900, terms 2/15, net 45. The cost of the merchandise sold is $29,175. Sampson Co. issued a credit memo for $5,800 for merchandise returned that originally cost $4,350. The Batson Co. paid the invoice within the discount period.
Prepare the entries that Sampson Company would record tor the (a) sale, (b) the cost of sale, (c) the return and the cost of the return and (d) the collection. For a compound transaction.
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