Question

Presented below is information from Wildhorse Computers Incorporated.

July 1		Sold $20,800 of computers to Robertson Company with terms 3/15, n/60. Wildhorse uses the gross method to record cash discounts. Wildhorse estimates allowances of $1,352 will be honored on these sales.
10		Wildhorse received payment from Robertson for the full amount owed from the July transactions.
17		Sold $208,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30.
30		The Clark Store paid Wildhorse for its purchase of July 17.

Prepare the necessary journal entries for Wildhorse Computers. (If no entry is required, select "No Entry" for the account titles and enter 0 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
july1
	(To record sales revenue.)
	(To record allowance for sales returns.)
july10
july 17
july 30

Answer 1

Answer
Date	Account title and description	Debit	Credit
Jul-01	Account receivable	$        20,800
	Sales revenue		$        20,800
	(To record sales revenue)
	Sales return and allowance	$          1,352
	Allowance for sale return and allowance		$          1,352
	(To record sales return)
Jul-10	Cash	$        20,176
	Sales discount (20,800 x 3%)	$             624
	Account receivable		$        20,800
Jul-17	Account receivable	$      208,000
	Sales revenue		$      208,000
Jul-30	Cash	$      208,000
	Account receivable		$      208,000