Question

g Sayers Co. sold merchandise on account to a customer for $80,000 terms 2/10, n/30. The cost of the goods sold was $58,000. a. Journalize Sayers’ entries to record the sale, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank. b. Journalize the receipt of payment within the discount period. If an amount box does not require an entry, leave it blank. c. Journalize the entry to record the receipt of payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank.

Answer 1

Answer:

a. 1. Debit Cost of goods sold $58,000

Credit Merchandise $58,000

2. Debit Receivable Accounts $78,400

Credit Sales $78,400

b.

Debit Cash $78,400

Credit Accounts Receivable  $78,400

c.

Debit Cash $80,000

Credit Sales discount forfeited $1,600

Credit Accounts Receivable  $78,400

Explanation:

Credit terms of 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

Sayers Co. uses the net method under a perpetual inventory system.

a. Journalize Sayers’ entries to record the sale:

1. Debit Cost of goods sold $58,000

Credit Merchandise $58,000

2. Debit Receivable Accounts $78,400

Credit Sales $78,400

b. Journalize the receipt of payment within the discount period

Debit Cash $78,400

Credit Accounts Receivable  $78,400

c. Journalize the entry to record the receipt of payment beyond the discount period of 10 days

Debit Cash $80,000

Credit Sales discount forfeited $1,600

Credit Accounts Receivable  $78,400