Ask Question
12 November, 16:58

On May 12, 2015, Falwell Computing sold five computers to Computing Plus for $10,000, subject to terms 3/10, n30. Falwell uses the net method of accounting for sales discounts. Required:1. Prepare the journal entry to record the sale. 2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on May 20, 2015.3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on June 5, 2015.

+4
Answers (1)
  1. 12 November, 17:49
    0
    The journal entries are as follows

    1. Account receivable Dr $9,700

    To Sales revenue $9,700

    (Being the sale is recorded)

    It is computed below:

    = $10,000 - $10,000 * 3%

    = $10,000 - $300

    = $9,700

    2. Cash Dr $9,700

    To Account receivable $9,700

    (Being the receipt of the payment is recorded)

    3. Cash Dr $10,000

    To Account receivable $9,700

    To Sales discount forfeited $300

    (Being the receipt of the payment is recorded)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On May 12, 2015, Falwell Computing sold five computers to Computing Plus for $10,000, subject to terms 3/10, n30. Falwell uses the net ...” 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