Oswego clay pipe company sold $46,000 of pipe to southeast water district #45 on april 12 of the current year with terms 1/15, n/60. oswego uses the gross method of accounting for cash discounts. what entry would oswego make on april 12? select one:

a. accounts receivable 46,000 sales 46,000

b. accounts receivable 45,540 sales 45,540

c. accounts receivable 45,540 sales discounts 460 sales 46,000

d. accounts receivable 46,000 sales 45,540 sales discounts 460

Question

Business

Brandi

14 November, 08:59

Oswego clay pipe company sold $46,000 of pipe to southeast water district #45 on april 12 of the current year with terms 1/15, n/60. oswego uses the gross method of accounting for cash discounts. what entry would oswego make on april 12? select one:

a. accounts receivable 46,000 sales 46,000

b. accounts receivable 45,540 sales 45,540

c. accounts receivable 45,540 sales discounts 460 sales 46,000

d. accounts receivable 46,000 sales 45,540 sales discounts 460

+1

Answers (2)

Know the Answer?

Cesar Villa · Answer 1

The answer in this question is A. accounts receivable 46,000 sales 46,000. Accounts receivable for $46,000 because the southeast water district didn't pay for cash and sales for also $46,000 because they sold $46,000 if pipes. Then we will come up of the balance on our account for $46,000 on both debit and credit accounts.

Shannon Barnett · Answer 2

The entry for April 12 is accounts receivable 46,000 sales 46,000 (a). This is because under gross method of accounting for the cash discounts, it assumed that the customer will not take the benefit of any cash or sale discount. Therefore, there will be an accounts receivable of 46,000 since they sold the pipe for account and sales of 46,000 to recognized the sold pipe.