Question

Presented below is information from Coronado Computers Incorporated.

July 1		Sold $16,000 of computers to Robertson Company with terms 3/15, n/60. Coronado uses the gross method to record cash discounts. Coronado estimates allowances of $1,040 will be honored on these sales.
10		Coronado received payment from Robertson for the full amount owed from the July transactions.
17		Sold $160,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30.
30		The Clark Store paid Coronado for its purchase of July 17.

Prepare the necessary journal entries for Coronado Computers. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
July 1	Accounts Receivable	16,000
	Sales Revenue		16,000
	(To Record Sales Revenue)
	Accounts Receivable	16,000
	Sales Returns and Allowances		16,000
	(To Record Allowance For Sales Returns)
July 10
July 17
July 30

Answer 1

Prepare the necessary journal entries for Coronado Computers. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
July 1	Accounts Receivable	16,000
	Sales Revenue		16,000
	(To Record Sales Revenue)
	Sales return and allowance	1040
	Account receivable		1040
	(To Record Allowance For Sales Returns)
July 10	cash (14960*97%)	14511.20
	Sales discount	448.80
	Account receivable		14960
July 17	Account receivable	160000
	Sales revenue		160000
July 30	Cash	160000
	Account receivable		160000