Question

I will thumbs up the correct answer. Prefer the answer done through Excel, thanks.

Part B: Entity B sold Entity C $9,000 of merchandise, terms 2/10, net 30. Entity B paid $4,500 for the merchandise. Instructions 1. Journalize the sale on Entity B's books. 2. If Entity C returned $2,000 of the merchandise purchased, and paid for the remainder in 8 days from the date of the sales invoice, how much did Entity C remit to Entity B?

Answer 1

1.

No.	Account Titles and Explanation	Debit	Credit
1a.	Accounts receivable	9000
	Sales revenue		9000
	(To record sales on account)
1b.	Cost of goods sold	4500
	Merchandise Inventory		4500
	(To record the cost of goods sold)

2.

Sales	9000
Less: Sales returns	2000
Net payable by Entity C	7000
Less: Sales discount (2% x $7000)	140
Amount remitted by Entity C	6860