Question

Presented below is information from Headland Computers Incorporated.
July 1 Sold $22,600 of computers to Robertson Company with terms 3/15, n/60. Headland uses the gross method to record cash discounts. Headland estimates allowances of $1,334 will be honored on these sales.
10 Headland received payment from Robertson for the full amount owed from the July transactions.
17 Sold $256,100 in computers and peripherals to The Clark Store with terms of 2/10, n/30.
30 The Clark Store paid Headland for its purchase of July 17.

Answer 1

Omitted question-- Prepare the necessary journal entries for Headland computers

Answer: Please see answers below

Explanation:

Journal to record sales revenue

Date           Account and explanation          Debit         Credit

July 1st    Account receivables                   $22,600

            Sales Revenue                                                      $22,600

Journal to record allowances for sales returns

July 1st    Sales returns and allowances       $1,334

Allowances for sales return and allowances                     $1,334

Journal to record receipt of cash from Robertson within discount period

July 10   Cash                                       $21,922

Sales discount                                        $678

Account receivables                                                            $22,600

Calculation

Discount = 22,600 x 3%= $678

Cash = $22,600 - $678= $21,922

Journal to record sales revenue

July 1`7   Account receivables                $256,100

Sales revenue                                                                            $256,100

Journal to record receipt of cash from Clark within discount period

July 30   Cash                                 $250,978      

Sales discount                                     $5,122

Account receivables                                                         $256,100                                    

Calculation

Discount = 256,100 x 2%= $5,122

Cash = $256,100 -$5,122= $250,978