Question

Presented below is information from Metlock Computers Incorporated. July 1 Sold $22,300 of computers to Robertson Company with terms 2/15, n/60. Metlock uses the gross method to record cash discounts. Metlock estimates allowances of $1,254 will be honored on these sales. 10 Metlock received payment from Robertson for the full amount owed from the July transactions. 17 Sold $292,800 in computers and peripherals to The Clark Store with terms of 1/10, n/30. 30 The Clark Store paid Metlock for its purchase of July 17. Prepare the necessary journal entries for Metlock Computers. (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 indent manually.)

Answer 1

Ans:

Date	Account Titles and Explanation	Debit	Credit
Jul-01	Accounts receivable	$22,300
	sales revenue		$22,300
	(To record sales revenue)
	Sales Returns and Allowances	$1254
	Allowance for sale returns and Allowances		$1254
	(To record allowance for sales returns)
Jul-10	Cash	$21,854
	Sales Discount($22,300*2%)	$446
	Account Receivable		$22,300
	(To record cash received on account)
Jul-17	Accounts receivable	$292,800
	Sales revenue		$292,800
	(To record sales made on account)
Jul-30	Cash	$292,800
	Accounts Receivable		$292,800
	(To record cash received on account)