Homework Answers
OPTION - B. Account Receivable.
In gross method the sales discounts are recorded as a debit to sales discount and credit to account Receivable in as a contra account.
To record a previous year entry an allowance for sales discounts account is used.
Cost of merchandise records the Inventory related accounts.
Merchandise Inventory records Inventory sold and other accounts related to Beginning and ending Inventory.
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Gross and net methods for sales discounts The following were selected from among the transactions completed by Strong Retail Group during August of the current year: Aug. S. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, 1/30. The cost of the merchandise sold was $4,200. 9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The cost of the merchandise sold was $2,100. 15. Received payment on account for the sale of August 5 less the...
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When a sale occurs and a company is using the gross method of recording sales discounts,...
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can anyone explain me this question? thanks! Reporting Net Sales and Expenses with Discounts, Returns, and...
can
anyone explain me this question? thanks!
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Gross and net methods for sales discounts The following were selected from among the transactions completed by Strong Retail Group during August of the current year: Aug. S. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, 1/30. The cost of the merchandise sold was $4,200. 9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The cost of the merchandise sold was $2,100. 15. Received payment on account for the sale of August 5 less the...
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can
anyone explain me this question? thanks!
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