Question

Presented below is information from Cheyenne Computers Incorporated. July 1 Sold $20,000 of computers to Robertson Company with terms 3/15, 1/60. Cheyenne uses the gross method to record cash discounts. Cheyenne estimates allowances of $1,300 will be honored on these sales. 10 Cheyenne received payment from Robertson for the full amount owed from the July transactions. 17 Sold $200,000 in computers and peripherals to The Clark Store with terms of 2/10,n/30. 30 The Clark Store paid Cheyenne for its purchase of July 17. Prepare the necessary journal entries for Cheyenne Computers. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit (To record sales revenue)

Answer 1

1-Jul	Accounts receivable	20000
	Sales		20000
	(to record sale on terms3/15,n/60)
	Sales Allowance	1300
	Accounts receivable		1300
	(to record allowances on the above sale)
10-Jul	Cash(18700-561)	18139
	Sales discount(20000-1300)*3%	561
	Accounts receivable(20000-1300)		18700
	(To record full payment within the discount period)
17-Jul	Accounts receivable	200000
	Sales		200000
	(to record sale on terms2/10,n/30)
30-Jul	Cash	200000
	Accounts receivable		200000
	(To record full payment after the discount period)

2..	Books of Grouper
	Cash(139300-4179-6965)	128156
	Loss on factoring(139300*3%)	4179
	Due from Monty (139300*5%)	6965
	Accounts receivable		139300
	(To record factoring of accounts receivable with Monty)
	Books of Monty
	Accounts receivable	139300
	Due to Grouper(139300*5%)		6965
	Financing revenue		4179
	Cash		128156
	(To record factoring of Monty's accounts receivable )