Which of the following shows the correct journal entry to record the sale under the gross...
Which of the following shows the correct journal entry to record the sale under the gross method if Beryl Brothers made a $15,000 sale with credit terms of 1/15, n/30?
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A : Debit Accounts Receivable for $14,850 and credit Sales Revenue for $14,850
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B : Debit Accounts Receivable for $15,000 and credit Sales Revenue for $15,000
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C : Debit Accounts Receivable for $14,850 and Sales Discounts for $150 and credit Sales Revenue for $15,000
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D : Debit Accounts Receivable for $15,000 and Sales Discounts for $150 and credit Sales Revenue for $14,850
Homework Answers
Answer: B : Debit Accounts Receivable for $15,000 and credit Sales Revenue for $15,000
Under the gross method of sales, agreed discount will be allowed only if the customer pays within the due date and as per sales terms otherwise no discount will be allowed. If discount is allowed, accordingly the discount entry will be posted.
Under the net method, the sales and accounts receivable is accounted at net amount.
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Which of the following shows the correct journal entry to record
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Brief Exercise 7-2
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Brief Exercise 7-2
Cullumber Co. uses the gross method to record sales made on
credit. On June 1, 2017, it made sales of $67,400 with terms 3/15,
n/45. On June 12, 2017, Cullumber received full payment for the
June 1 sale.
Prepare the required journal entries for Cullumber Co.
(If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts. Credit account titles
are automatically indented when the amount is entered. Do not...
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5. AG Inc. made a $25,000 sale on account with the following terms: 2/10, n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale? a. Debit Accounts Receivable for $24,500. b. Debit Accounts Receivable for $24,500 and Sales Discounts for $500. C. Debit Accounts Receivable for $25,000. d. Debit Accounts Receivable for $25,000 and Sales Discounts for $500. 6. On July 22, Peter sold...
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