Question

Windsor Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020....

Windsor Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $619,700 (cost of $540,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,700. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Windsor for the full sales price.

Prepare the journal entry(ies) to record the sale and related cost of goods sold for Windsor Company on January 2, 2020, and the payment on January 28, 2020. Assume that Windsor 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)

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List of Accounts

  

  

Prepare the journal entry(ies) to record the sale and related cost of goods sold for Windsor Company on January 2, 2020, and the payment on January 28, 2020. Assume that Windsor Company records the January 2, 2020, transaction using the gross 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

(To record payment received)

show work and explain

Homework Answers

Answer #1

Answer :

(a) Net method

Date Acccount Title and Explanation Debit Credit
02/01/2020 Notes receivable $ 610000
Sales revenue $ 610000
( To record sales )
02/01/2020 Cost of goods sold $ 540000
Inventory $ 540000
(To record cost of goods sold )
28/01/2020 Cash $ 619700
Notes receivable $ 610000
Sales discount forfeited $ 9700
( To record payment received)

(b)Gross method

Date Acccount Title and Explanation Debit Credit
02/01/2020 Notes receivable $ 619700
Sales revenue $ 619700
( To record sales )
02/01/2020 Cost of goods sold $ 540000
Inventory $ 540000
(To record cost of goods sold )
28/01/2020 Cash $ 619700
Notes receivable $ 610000
( To record payment received)
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