Question

Presented below is information from Teal Computers Incorporated. July 1 Sold $19,600 of computers to Robertson Company with terms 3/15, n/60. Teal uses the gross method to record cash discounts. Teal estimates allowances of $1,274 will be honored on these sales. 10 Teal received payment from Robertson for the full amount owed from the July transactions. 17 Sold $196,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Teal for its purchase of July 17. for the amounts. Credit Prepare the necessary journal entries for Teal Computers. (If no entry is required, select "No Entry" for the account titles and enter account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit (To record sales revenue.) (To record allowance for sales returns.)

Answer 1

Date	Account details & Transaction	Debit	Credit
July 1	Accounts receivable	$19,600
	Cash		$19,600
	Sales returns and allowances	$1,274
	Allowances for Sales returns and allowances		$1,274
July 10	Cash	$19,012
	Sales Discount	$588
	Accounts Receivable		$19,600
July 17	Accounts receivable	$196,000
	Sales revenue		$196,000
July 30	Cash	$196,000
	Accounts receivable		$196,000