Question

a) On July 1, 2019, Apple Co. sold 20 units of PC on account to HV University at $1,000 per unit. Payment term is 3/10, n/30. The cost of PC sold is $650 per unit. On July 4, YL returned two PCs. On July 11, Apple co. received the balance due from HV University. Please prepare journal entries to record the transactions above.

Answer 1

Journal Entries for the above transactions are:

S.No	Date	Journal & Explanation	Debit($)	Credit($)
1	1-Jul-19	HV University	20000
		Sales(20*1000)		20000
		(20 PC's Sold on credit)
2	4-Jul-19	Sales Returns(2*1000)	2000
		HV University		2000
		(2 PC's returned by HV University)
3	11-Jul-19	Cash/Bank(18*1000)	18000
		HV University		18000
		(As the payment was received after 10 days, no discount can be availed)