Question

Sarasota Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $52,600 with terms 4/15, n/45. On June 12, 2017, Sarasota received full payment for the June 1 sale. Prepare the required journal entries for Sarasota Co. (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 June 1 June 12

Answer 1

Journal entries in the books of Sarasota Co

Date	Account Titles and Explanation	Debit	Credit
June 1	Accounts Receivable A/c	$52,600
	To Sales Revenue A/c		$52,600
	[ Being the sales are made on account for $52,600 ]
June 12	Cash A/c [$52,600 – ( $52,600 x 0.04) ]	$50,496
	Sales Discount A/c [ $52,600 x 0.04 ]	$2,104
	To Accounts Receivables A/c		$52,600