Answer:
Explanation:
a. On March 2
Accounts receivable A/c Dr $$887,400
To sales A/c $$887,400
(Being inventory sold at sale price)
Cost of goods sold A/c Dr $
To Merchandise inventory A/c $571,700
(Being merchandise sold at cost price)
b. On March 8
Sales return and allowance A/c Dr $103,200
To Accounts receivable $103,200
(Being sales return is recorded)
Merchandise inventory A/c Dr $62,500
To Cost of goods sold A/c $62,500
(Being sales return is recorded)
c. On March 12
Cash A/c Dr $768,516
Sales discounts A/c Dr $15,684
To Accounts receivable A/c $784,200
(Being cash received recorded)
The computation of the balance due is shown below:
= Sale of inventory - returned goods
= $887,400 - $103,200
= $784,200
And the discount = $784,200 × 2% = 15,684
