Question

On July 18, 2021, Philly Furniture Factory sold 20 reclining rockers to Dave's Discount Furniture for $8,000, subject to terms 2/10, n/30. Philly uses the net method of accounting for sales discounts.

Required:
1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on July 26, 2021.
3. Prepare the journal entry to record receipt of the payment assuming the correct amount was received on August 15, 2021.

Answer 1