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26 February, 02:11

On December 1, Macy Company sold merchandise with a selling price of $ 5,000 on account to Mrs. Jorgensen, with terms 4 /10, n/30. On December 3, Mrs. Jorgensen returned merchandise with a selling price of $ 900. Mrs. Jorgensen paid the amount due on December 9. What journal entry did Macy Company prepare on December 9 assuming the gross method is used?

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  1. 26 February, 02:42
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    The journal entry is shown below:

    Cash A/c Dr 3,936

    To Accounts receivable A/c 3,936

    (Being payment is received within the discount period)

    The amount of cash received is shown below:

    = Sales - returned goods - discount

    = $5,000 - $900 - 4%

    = 3,936

    Since the cash is received so we debited the cash and credited the account receivable account
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