Question

Sales-related transactions 

Sayers Co. sold merchandise on account to a customer for $80,000 terms 2/10, n/30. The cost of the goods sold was $67,000. 

a. Journalize Sayers' entries to record the sale. 

b. Journalize the receipt of payment within the discount period. 

c. Journalize the entry to record the receipt of payment beyond the discount period of ten days. 

Answer 1

Accounts title	Debit	Credit
Accounts receivables	78400
Sales Revenue [80000 *(100-0.02)		78400
(Sales recorded, net of discount)
Cost of Goods Sold	67,000
Inventory		67,000
(Cost of Goods Sold recorded)

B.

Accounts title	Debit	Credit
Cash	78400
Accounts receivables		78400
(Payment received within discount term

C.

Accounts title	Debit	Credit
Cash	80,000
Sales Discount forfeited		1600
Accounst receivables		78400
(Payment received after discount term and discount cancelled)