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16 May, 23:30

Swifty Corporation made a $25500 sale on account with the following terms: 2/15, n/30. If the company uses the net method to record sales made on credit, what is/are the debit (s) in the journal entry to record the sale?

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  1. 17 May, 00:02
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    The debit in the journal entry to record the sale is of Accounts receivable debited by $24990

    Explanation:

    The net method assumes that every customer will avail the cash discount and pay within the discount terms. Thus, under the net method, the sale is recorded at discounted price. Th entry under net method will be,

    Accounts receivable $24990 Dr

    Sales revenue $24990 Cr

    The sale of $25500 is recorded after deducting the discount. The after discount or net value of sale is:

    Net value of sale = 25500 * 0.98 = $24990
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Home » Business » Swifty Corporation made a $25500 sale on account with the following terms: 2/15, n/30. If the company uses the net method to record sales made on credit, what is/are the debit (s) in the journal entry to record the sale?
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