Question

Exercise 7-06 Presented below is information from Tamarisk Computers Incorporated. July 1 10 17 30 Sold $18,000 of computers to Robertson Company with terms 3/15, n/60. Tamarisk uses the gross method to record cash discounts. Tamarisk estimates allowances of $1,170 will be honored on these sales. Tamarisk received payment from Robertson for the full amount owed from the July transactions. Sold $180,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. The Clark Store paid Tamarisk for its purchase of July 17. Prepare the necessary journal entries for Tamarisk Computers. (If no entry is required, select "No Entry" for the account titles and enter o 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.) (To record allowance for sales returns.) Click if you would like to show Work for this question: Open Show Work

Answer 1

Date	Account title and description	Debit	Credit
Jul-01	Account receivable	18,000
	Sales revenue		18,000
	(To record sales revenue)
	Sales return and allowance	1,170
	Allowance for sale return and allowance		1,170
	(To record allowance for sales return)
Jul-10	Cash	17,460
	Sales discount (18,000 x 3%)	540
	Account receivable		18,000
Jul-17	Account receivable	180,000
	Sales revenue		180,000
Jul-30	Cash	180,000
	Account receivable		180,000