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On October 5, Loomis Company buys merchandise on account from Brooke Company. The selling price of the goods is $5,000, and the cost to Brooke Company is $3,100. On October 8, Loomis returns defective goods with a selling price of $650 and a fair value of $100. Record the transactions on the books of Loomis Company.
Assume information similar to that in DO IT! 5-2: On October 5, Loomis Com- pany buys merchandise on account from Brooke Company. The selling price of the goods is $5,000, and the cost to Brooke Company is $3,100. On October 8, Loomis returns defec- tive goods with a selling price of $650 and a fair value of $100. Record the transactions on the books of Brooke Company.
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