On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,000, terms 3/10, n/30. Grace does not pay for services until March 31, missing the 3% sales discount. Required: For Grace Hospital, record the purchase of services on account on March 12 and the payment of cash on March 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Business

Fisher Kane

3 March, 11:37

On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,000, terms 3/10, n/30. Grace does not pay for services until March 31, missing the 3% sales discount. Required: For Grace Hospital, record the purchase of services on account on March 12 and the payment of cash on March 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Trinity Garza · Answer 1

The journal entries are shown below:

On March 12:

Service fee expense A/c Dr $10,000

To Accounts payable $10,000

(Being purchase of service is recorded)

On March 31:

Accounts payable A/c Dr $10,000

To Cash A/c $10,000

(Being cash payment is made)