Question

On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,100, terms 2/10, n/30. Grace pays fo those services on March 20. Required: For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 20. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the cash received on account. Note: Enter debits before credits General Journal Date March 20 Debit Credit Cash

Answer 1

date	general journal	debit	credit
march 20	cash	$9898
	discount allowed for early payment	$202
	accounts recievable		$10100

the cash recieved on march 20 will be $9898, that is the credit terms for services done is if the payment is done in the upcoming 10 days then thay will recieve a 2% discount and after 10 days they the discount will not be applicable.they paid the amount within the 10 days (march 20) .so the payment to be made =$10100*98%=$9898

discount allowed is =$10100*2%=$202

cash is an asset account which should be debited when it increases and discount allowed is an expense which should be debited when it increases.accounts recievable is an asset account which should be credited when it decreases.