Question

Kingbird Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $599,300 (cost of $490,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,300. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Kingbird for the full sales price.

(a)

Prepare the journal entry(ies) to record the sale and related cost of goods sold for Kingbird Company on January 2, 2020, and the payment on January 28, 2020. Assume that Kingbird Company records the January 2, 2020, transaction using the net method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date Jan. 2, 2020Jan. 28, 2020	enter an account title to record sales	enter a debit amount	enter a credit amount
	enter an account title to record sales	enter a debit amount	enter a credit amount
	(To record sales)
	enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
	enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
	(To record cost of goods sold)
choose a transaction date Jan. 2, 2020Jan. 28, 2020	enter an account title to record payment received	enter a debit amount	enter a credit amount
	enter an account title to record payment received	enter a debit amount	enter a credit amount
	enter an account title to record payment received	enter a debit amount	enter a credit amount
	(To record payment received)

Answer 1

Prepare the journal entry(ies) to record the sale and related cost of goods sold for Kingbird Company on January 2, 2020, and the payment on January 28, 2020. Assume that Kingbird Company records the January 2, 2020, transaction using the net method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	CreditJan. 2, 2020
Jan 2	Account receivable (599300-9300)	590000
	Sales revenue		590000
	(To record sales)
	Cost of goods sold	490000
	Merchandise inventory		490000
	(To record cost of goods sold)
Jan. 28, 2020	Cash	599300
	Account receivable		590000
	Sales discount forfeited		9300
	(To record payment received)