Question

Recording Cash Discount Entries— Gross Method Lynx Inc. sells apparel merchandise to Dyson Inc. at a...

Recording Cash Discount Entries— Gross Method

Lynx Inc. sells apparel merchandise to Dyson Inc. at a gross sales price of $980, credit terms 2/10, n/30 on July 10, 2020. Dyson pays for the merchandise in full on July 19, 2020. Record the entries required on July 10, 2020, and July 19, 2020, for Lynx Inc. assuming use of the gross method in accounting for credit sales. Omit the cost of goods sold entry.

Note: Round your answers to the nearest whole number.

Date. Account name dr. cr.

July 10 (Blank)

(Blank)

July 19 Cash

(Blank)

(Blank)

Business   Accounting   
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Answer #1

Entries in the books of Lynx Inc

Date Accont Name     Dr Cr

July 10,2020 Dyson Inc. A/c Dr    $980

(Account Recievables)

To Sales A/c $980

(being revenue by sales recorded in the books of Lynx Inc. by debiting Dyson Inc as Account Recievable)

July 19,2020 Cash A/c Dr     $960

Discount allowed Dr $20

(sales discounts)

To Dyson inc. A/c $980

(accounts recievable)

(being payment recieved within 10 days, so discount allowed 2% of sales value($980*2%=19.6, rounded to 20)

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