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
