[accounting19234]

The problem reads as such: A computer costing 600 was sold to a customer on credit for 1,500. The customer said the wrong model was shipped, but rather than returning it, the customer agreed to keep the computer for 1,100. The requirement is to show all journal entries and calculate for net sales.

I have worked out a solution to the problem that I think may be correct.

Accounts Receivable 1,500
Sales 1,500

Sales returns and allowances 400
Accounts Receivable 400

Inventory 440
Cost of Goods Sold 440

My calculation of the inventory is: (1,100/1,500) X 100=73.3% X 600 represents the change in inventory. Net Sales seems to be just 1,100. Is there an entry for this?

[ms180sx]

Everything looks right. I don't think there's an account for net sales like your thinking

Looks like you've got everything accounted for on the ledger.