Question

Bold Interiors reported the following transactions in December: (Click on the icon to view the transactions.) Read the requirements. Requirement 1. Record the foregoing transactions in the journal of Bold Interiors using the gross method. (You do not need to make the cost of sales journal entries, assume that these entries will be made by the company when it makes its other adjusting entries at period end.) (Record debits first, then credits. Exclude explanations from any journal entries.) Dec 2: Sold merchandise on account to Toby Bothwell, $1,000, terms 2/10, n/30. Journal Entry Date Accounts Debit Credit Dec 2 Requirements - X Record the foregoing transactions in the journal of Bold Interiors using the gross method. (You do not need to make the cost of sales journal entries, assume that these entries will be made by the company when it makes its other adjusting entries at period end.) 2. Calculate the amount of gross sales minus sales discounts for the month of December A More Info - X Print Done Dec 2 10 11 15 19 Sold merchandise on account to Toby Bothwell, $1,000, terms 2/10, n/30. Sold merchandise on account to Brady Oxford, $2,200, terms 1/10, n/30. Collected payment from Bothwell for the December 2 sale. Oxford returned $1,600 of the merchandise purchased on December 10. Collected payment from Oxford for the balance of the December 10 sale.

Answer 1

Please find the journal entries below

Date	Accounts	Debit	Credit	Explanation
Dec-02	Bothwell A/c ……………………………..Dr	1000
	To Sales		1000
Dec-10	Brady Oxford A/c ………………………..Dr	2200
	To Sales		2200
Dec-11	Cash A/c…………………………………....Dr	980		As the payment is collected within 10 days dicount is given. 1000 X 2% = 20 discount
	Discount A/c……………………………..Dr	20
	To Bothwell A/c		1000
Dec-15	Sales Returns A/c ……………………..Dr	1600
	To Brady Oxford A/c		1600
Dec-19	Cash A/c	594		(2200-1600) = 600 is to be collected but discount is given 1 % therefore 600 X 1% = 6
	Discount A/c……………………………..Dr	6
	To Brady Oxford A/c		600