Ask Question
10 June, 17:36

On July 2nd, Mills Wholesalers sells $3,150 of goods to Barnett Incorporated with terms 2/15, n/eom. On July 9th, Mills grants a sales allowance of $750 to Barnett. Journalize the cash entry for Mills if Barnett makes payment in full on July 9th.

+3
Answers (1)
  1. 10 June, 18:43
    0
    The journal entry is as follows:

    Cash A/c Dr $2,352

    Sales Discount A/c Dr $48

    To Accounts receivable $2,400

    (Being cash received recorded)

    The computation of the account receivable

    = Credit sales - sales allowance

    = $3,150 - $750

    = $2,400

    And, the discount would be

    = Accounts receivable * percentage given

    = $2,400 * 2%

    = $48

    The remaining amount would be credited to the cash account.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On July 2nd, Mills Wholesalers sells $3,150 of goods to Barnett Incorporated with terms 2/15, n/eom. On July 9th, Mills grants a sales ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers