Record the following transactions on the books of RAS Co.

(a) On July 1, Cullumber Co. sold merchandise on account to Waegelein Inc. for $15,300, terms 2/10, n/30.

(b) On July 8, Waegelein Inc. returned merchandise worth $3,500 to Cullumber Co.

(c) On July 11, Waegelein Inc. paid for the merchandise.

Question

Business

Martha Shepard

13 August, 22:30

Record the following transactions on the books of RAS Co.

(a) On July 1, Cullumber Co. sold merchandise on account to Waegelein Inc. for $15,300, terms 2/10, n/30.

(b) On July 8, Waegelein Inc. returned merchandise worth $3,500 to Cullumber Co.

(c) On July 11, Waegelein Inc. paid for the merchandise.

+3

Answers (1)

Know the Answer?

Ahmed Lambert · Answer 1

July 1

Trade Receivable - Waegelein Inc $15,300 (debit)

Revenue $15,300 (credit)

July 8

Revenue $3,500 (debit)

Trade Receivable - Waegelein Inc $3,500 (credit)

July 1 1

J1

Discount Allowed $236 (debit)

Trade Receivable - Waegelein Inc $236 (credit)

J2

Cash $11,564 (debit)

Trade Receivable - Waegelein Inc $11,564 (credit)

Explanation:

July 1

Recognise Revenue and Asset - Trade Receivable

July 8

De-recognise Revenue and de-recognise asset - Trade Receivable

July 1

Payment is within the range of discount period of 10 days

J1

Recognise Discount Allowed Expense and De-recognise the Asset - Trade Receivable

J2

Recognise the Cash on receipt of payment less discount allowed and de-recognise Asset - Trade Receivable

Record the following transactions on the books of RAS Co.(a) On July 1, Cullumber Co. sold merchandise on account to Waegelein Inc. for $15,300, terms 2/10, n/30.(b) On July 8, Waegelein Inc. returned merchandise worth $3,500 to Cullumber Co.(c) On July 11, Waegelein Inc. paid for the merchandise.