Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
July 1 Sold $128,000 of solar panels
Dr Receivables 128,000
Cr Sales 128,000
12 Sold $82,000 of solar panels
Dr Receivables 82,000
Cr Sales 82,000
18 Novak Corp. paid Windsor for its July 12 purchase.
Dr Cash 78,720
Dr Discount allowed 3280
Cr Receivables 82,000
Windsor grants a credit of $2,100 as compensation.
Dr compensation expense 2,100
Cr cash 2,100
29 Wildhorse Company paid Windsor for its July 1 purchase.
Dr Cash 128,000
Cr Receivables 128,000
31 Windsor expects allowances of $5,340 to be grated in the future
Dr Bad debt expense 5,340
Cr Allowance for bad debt 5,340
