Question

15. Your business receives a payment from a credit customer, the amount being £650. This receipt...

15. Your business receives a payment from a credit customer, the amount being £650. This receipt is in full settlement for an invoice of £665 (i.e. a £15 discount is allowed to the customer). What are the accounting entries for the customer receipt?

a. Debit bank £665: Debit Discounts allowed £15: Credit accounts receivable £650

b. Credit bank £650: Debit Discounts allowed £15: Credit accounts receivable £665

c. Debit bank £650: Debit Discounts allowed £15: Credit accounts receivable £665

d. Credit bank £665: Credit Discounts allowed £15: Debit accounts receivable £650

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2
Option [c] is Correct
Journal Entry :
Debit General Journal Debit Credit
Bank A/c                        Dr. £      650
Discount Allowed A/c   Dr. £         15
     To Accounts Receivable A/c £      665
(To Record the Receipt of Payment)
answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
True or False 1. A company makes a credit sale for $500. Future collection from the...
True or False 1. A company makes a credit sale for $500. Future collection from the customer is probable. The company will not record revenue from the transaction until it collects cash from the customer. 2. Credit sales involve benefits and costs. A benefit of selling on credit is that the seller makes it more convenient for customers to purchase goods and services. A cost of selling on credit is that there is a delay in collecting cash from customers....
Exercise 7-15 On August 31, 2021, Sheridan Company had a cash balance per its books of...
Exercise 7-15 On August 31, 2021, Sheridan Company had a cash balance per its books of $26,660. The bank statement on that date showed a balance of $17,760. A comparison of the bank statement with the Cash account revealed the following. 1. The August 31 deposit of $17,050 was not included on the August bank statement. 2. The bank statement shows that Sheridan received EFT deposits from customers on account totalling $2,420 in August. Sheridan has not recorded any of...
A business has the following transaction: Date Transaction 13/06/16    Sale of inventory on credit to...
A business has the following transaction: Date Transaction 13/06/16    Sale of inventory on credit to AFM P/L. The GST inclusive amount of the invoice is 44000 and the terms are 2/10 n30 21/06/16 AFM P/L settles their account in full. The above transaction is the only invoice outstanding All numerical answers are numbers which consist only of the digits 0 to 9. Symbols or punctuation marks should NOT be incorporated in answers. With regard to the transaction of 21/6/16...
You are having a hard time selling a stuffed (deceased) pony from your downtown showroom and...
You are having a hard time selling a stuffed (deceased) pony from your downtown showroom and decide to offer a sales discount for early payment to any customer who will purchase the pony and pay within 10 days. The normal selling price is $8,000, but customers who pay within the discount period will receive a 20% discount. Full payment must be made within 30 days (20/10, n/30). A customer purchases the pony on account but calls you up the next...
On August 2, Jun Co. receives a $7,400, 90-day, 13.5% note from customer Ryan Albany as...
On August 2, Jun Co. receives a $7,400, 90-day, 13.5% note from customer Ryan Albany as payment on his $7,400 account receivable. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. (Do not round intermediate calculations. Round your answers to nearest whole dollar value. Use 360 days a year.) Record cash received on note plus interest. Note: Enter debits before credits. Date General Journal Debit Credit Oct 31 Prepare journal...
In credit terms of 1/10, n/30, the "1" represents the   a. number of days in the...
In credit terms of 1/10, n/30, the "1" represents the   a. number of days in the discount period b. full amount of the invoice c. number of days when the entire amount is due d. percent of the cash discount Merchandise with a sales price of $500 is sold on account with term 2/10, n/30. The journal entry to record the sale would include a   a. debit to Cash for $500 b. Debit to Sales Discounts for $10 c. Credit...
1) Brankov Company has current assets of $95,000 and current liabilities of $110,000. The company  decides to...
1) Brankov Company has current assets of $95,000 and current liabilities of $110,000. The company  decides to issue stock and receives cash of $100,000. After this transaction, the company's current ratio will be: (Round your final answer to two decimal places.) A) 1.77.                         B) 1.86.                          C) 0.91.                          D) 0.86. 2) Which of the following lists the accounts in order of liquidity?                                                               Furniture, Cash, Accounts Receivable, Inventory Cash, Inventory, Accounts Receivable, Furniture Cash, Accounts Receivable, Inventory, Furniture Furniture, Cash, Inventory, Accounts Receivable 3) If adjusting...
a. 1/1/18 Office Supplies 350          Accounts Payable 350 To record on credit payment for office...
a. 1/1/18 Office Supplies 350          Accounts Payable 350 To record on credit payment for office supplies b. 1/1/18 Prepaid Insurance 1800          Cash 1800 To record purchase of 24-month insurance for cash c. 1/1/18 Computer Equipment 2100          Accounts Payable 2100 To record purache of computer equipment d. 1/5/18 Merchandise Inventory 1275          Accounts Payable 1275 To record purchase of merchandis for resale e. 1/8/18 Accounts Payble 2100         Sales Discount 42         Cash 2058 To record full payment...
Purchase- Related Transaction The Stationery Company purchased merchandise on account from a supplier for $17,000 terms...
Purchase- Related Transaction The Stationery Company purchased merchandise on account from a supplier for $17,000 terms 2/10 n/30. The Stationery Company returned merchandise with invoice amount of $2, 200 and received full credit. a) If The Stationery Company pays invoice within the discount period, what is the amount of cash required for the payment? $____________. Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit...
1. Gore Inc. sold $7,200 of merchandise on account, terms 2/10,n/30. If the customer paid the...
1. Gore Inc. sold $7,200 of merchandise on account, terms 2/10,n/30. If the customer paid the amount owed within the discount period, the entry to record the receipt of cash would include a: debit to cash of $7,200 debit to sales discount of $144 credit to accounts receivable of $144 credit to accounts payable of $7,056       2.   Cost of goods sold:             A) Is another term for sales.             B)   Is the term used for the cost of buying...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT