On January 2, 2016, MM, Inc. shipped 100 drone aircraft to CCPCompany having a total selling price of $60,000 (cost $26,000) withterms 2/10, n/30, f.o.b., shipping point. MM allows CCP to returnproduct that are not satisfactory. The 6 conditions for the rightof return are met. An invoice totaling $120, terms n/30 wasreceived by CCP on January 6 from LLD Delivery Service for thefreight cost. Upon receipt of the goods, on January 3, CCP notifiedMM that $250 of drone aircraft contained flaws. The same day, MMissued a credit memo covering the defective drone aircraft andstated that it be returned at MMâs expense. The freight on thereturned drone aircraft was $20 paid LLD Delivery Service onJanuary 7. On January 12, the MM received an electronic deposit forthe balance due CCP.
Instructions:
a) Prepare journal entries for MM, Inc. to record all the eventsnoted above.
b) Prepare the journal entries for CCP Company to record all ofthe events noted.
c) Prepare journal entries for LLD Delivery Service to recordall the events noted above.
On January 2, 2016, MM, Inc. shipped 100 drone aircraft to CCPCompany having a total selling price of $60,000 (cost $26,000) withterms 2/10, n/30, f.o.b., shipping point. MM allows CCP to returnproduct that are not satisfactory. The 6 conditions for the rightof return are met. An invoice totaling $120, terms n/30 wasreceived by CCP on January 6 from LLD Delivery Service for thefreight cost. Upon receipt of the goods, on January 3, CCP notifiedMM that $250 of drone aircraft contained flaws. The same day, MMissued a credit memo covering the defective drone aircraft andstated that it be returned at MMâs expense. The freight on thereturned drone aircraft was $20 paid LLD Delivery Service onJanuary 7. On January 12, the MM received an electronic deposit forthe balance due CCP.
Instructions:
a) Prepare journal entries for MM, Inc. to record all the eventsnoted above.
b) Prepare the journal entries for CCP Company to record all ofthe events noted.
c) Prepare journal entries for LLD Delivery Service to recordall the events noted above.
