Question

6) On November 10 of the current year, Blg Mills sold carpet to a customer for $18,000 6 with credit terms 2/10, n/30. Flores uses the net method of accounting for cash discounts. Complete the statement. Per GAAP, companies should recognise receivables at the A) Prepare the Journal entry on November 10 to record the sale B)Prepare the journal entry on December 10, to record collection from customer who did not pay on time to get the full discount. A) B)

Answer 1

Debit Credit Account Title & Explanation 40 41A) 42 43 17640 Accounts Receivable (18000-18000296) 17640 Sales To record sale of Inventory) 18000 45 B) 46 47 48 49 Cash 17640 Accounts Receivable 360 Sales Discount forfeited (To receive payment after the discount period)