Question

Journalize the following merchandise transactions: a. Sold merchandise on account, $17,300, with terms 2/10, net 30. The cost of the merchandise sold was $12,600. Sale Cost b. Received payment within the discount period.

Answer 1

Answer:

a. Accounts Receivable                Debit                  $ 17,300

   Sales Revenue                          Credit                                     $ 17,300

To record sales on account    

Cost of goods sold                        Debit               $   12,600

Inventory                                        Credit                                      $ 12,600

To record cost of goods of sales made

b. Cash                                           Debit                $   16,954

    Sales Discounts allowed          Debit                $       346

    Accounts Receivable                Credit                                     $ 17,300

Explanation:

The payment for the sales has been made within the discount period, it is calculated as under:

$ 17,300 * 2 % = $ 346