Question

On April 1, Moloney Meat Distributors sold merchandise on account to Fronke's Franks for $3,560 on Invoice 1001, terms 2 / 10, n / 30 . The cost of merchandise sold was $2,120. Payment was received in full from Fronke's Franks, less discount, on April 10 . Record the transactions for Moloney Meat Distributors on April 1 and April 10. The company uses the perpetual inventory system. (Round final answers to the nearest whole dollar value.)

Answer 1

Date	Particulars	Debit($)	Credit($)
April 01, 2019	Fronke's Franks A/c Dr	3560.00
	To Sales A/c		3560.00
	(Being Merchandise sold on account on terms of 2/10 n/30 against Invoice No:1001)
April 01, 2019	Sales A/c Dr To Purchases A/c To Gross Profit	3560.00	2120.00 1440.00
	(Being profit booked on sales of merchandise)
April 10, 2019	Cash/Bank A/c Dr Cash Discount A/c Dr To Fronke's Franks A/c	3488.80 71.20	3560.00
	(Being amount received against invoice No 1001 and discount allowed at the rate of 2% as payment is made in 10 days.)
	Total	10680.00	10680.00