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11 July, 10:21

Restin Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $50,000 with terms 3/15, n/45. On June 12, 2017, Restin received full payment for the June 1 sale. Prepare the required journal entries for Restin Co.

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  1. 11 July, 13:43
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    June 1

    Accounts Receivable 50,000

    Sales Revenue 50,000

    June 12

    Cash 48,500*

    Sales Discounts 1,500

    Accounts Receivable 50,000

    = $50,000 - ($50,000 X 0.03)

    = $48,500
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