Question

Brief Exercise 7-2

Cullumber Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $67,400 with terms 3/15, n/45. On June 12, 2017, Cullumber received full payment for the June 1 sale.

Prepare the required journal entries for Cullumber Co. (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
June 1
June 12

Here are the list of accounts

Brief Exercise 7-2

Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Bad Debt Expense Cash Cash Over and Short Due from Factor Due to Customer Discount on Notes Payable Discount on Notes Receivable Freight-In Freight-Out Gain on Disposal of Land Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Sale of Receivables Miscellaneous Expenses No Entry Notes Payable Notes Receivable Office Expense Owner's Drawings Petty Cash Postage Expense Purchase Discounts Recourse Liability Sales Discounts Sales Discounts Forfeited Sales Revenue Service Revenue Supplies Supplies Expenses Unearned Sales Revenue

Answer 1

June 1	Accounts Receivable	67400
	Sales revenue		67400
June 12	Cash	65378
	Sales discount (67400*3%)	2022
	Accounts Receivable		67400