Question

resented below is information from Perez Computers Incorporated. July 1 Sold $20,000 of computers to Robertson Company with terms 3/15, n/60. Perez uses the gross method to record cash discounts. Perez estimates allowances of $1,300 will be honored on these sales. 10 Perez received payment from Robertson for the full amount owed from the July transactions. 17 Sold $200,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Perez for its purchase of July 17. Prepare the necessary journal entries for Perez Computers

Answer 1

Answer:

Journal entries

Explanation:

The journal entries are as follows

On July 1      

Accounts receivable $20,000  

            To Sales revenue  $20,000

(Being the sales is recorded)

On July 10

Cash $194,00  

Sales discount $600        ($20,000 × 3%)

         To Accounts receivable   $20,000

(Being the sale is recorded)

On July 17

Accounts receivable $200,000  

            To Sales revenue  $200,000

(Being the sales is recorded)

On July 30

Cash $200,000  

          To    Accounts receivable  $200,000

(Being the amount received is recorded)