I am working on some homework and I am having trouble figuring out how to log the journal entries for this problem. Please Help?
January 8th, Bob purchases $5,000,000 of specialty T-Shirts from The T-Shirt Company. The invoice terms are 5/30, n/60. Bob pays $100,000 cash for transportation cost of the inventory. Upon unpacking the inventory, On January 9th, Bob notices that some of the T-Shirts are defective. He returns $350,000 of the merchandise to the vendor and receives a full credit.