Question

Sold merchandise on account, $14,25” with terms 2/10, n/30. The cost of the goods sold was $8,550

Answer 1

Journal Entries:

1) To record the sale of merchandise:

Debit Accounts Receivables $14250

Credit Sales Revenue $14250

2) To record the cost of Merchandise sold :

Debit Cost of Goods Sold $8550

Credit Merchandise Inventory $8550

3) To record the payment received within 10 days of sale and Trade discount of 2% is given:

Debit Cash $13965

Debit Trade discount $285

Credit Accounts Receivables $14250

4) To record if payment received after 10 days of sale :

Debit Cash $14250

Credit Accounts Receivables $14250