On October 5, Metlock Company buys merchandise on account from Ivanhoe Company. The selling price of the goods is $5,240, and the cost to Ivanhoe Company is $3,180. On October 8, Metlock returned defective goods with a selling price of $640 and a scrap value of $310. Record the transactions of Metlock Company, assuming a perpetual approach.

The answer is given below;

Explanation:

Inventory                 Dr.$5,240

Accounts Payable-Ivanhole        Cr.$5,240

Accounts Payable-Ivanhole      Dr.$640

Inventory                   Cr.$640

The scrap value given is irrelevant as the metlock will set off the account payable of ivanhole as the goods are returned to him.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

answer; offer in store wine and beer samples;