Reference no: EM132832503

Assume you are the bookkeeper for Vivien's Wholesalers, a distributor of kitchen furniture. Your sales manager informed you that Tate's Retailers is unhappy with the quality of some tables delivered on February 10, 2019, and will be shipping back all of the goods. The original invoice amounted to $4,000 and the goods cost Vivien's $1,000. Using a perpetual inventory system, complete the journal entries for Vivien's Wholesalers for each of the following independent scenarios.

Problem a) Rather than taking back the tables, your sales manager agreed to allow Tate's Retailers a 5% discount if they agree to keep the goods. Record Tate's payment in settlement of the invoice on March 10 assuming the allowance is not recorded until the settlement date.

Problem b) Suppose that Tate's shipped back all of the goods on February 18 and the inventory was put back on the sales floor. Journalize the transactions. Record the sales return transaction first.

Problem c) Suppose that Tate's shipped back half of the goods on February 18 and kept the other half with a 5% allowance. Journalize the transactions. Record the sales return transaction first.