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17 June, 02:44

On july 1, cohen co. sold merchandise on account to tracy inc. for $23,000, terms 2/10, n/30. (b on july 8, tracy inc. returned merchandise worth $2,400 to cohen co. (c on july 11, tracy inc. paid for the merchandise.

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  1. 17 June, 05:13
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    Cost of goods sold entries will be omitted.

    Debit Credit

    July 1

    Accounts Receivable 23,000

    Sales 23,000

    July 8

    Sales Returns 2,400

    Account Receivable 2,400

    July 11 (within 10 days from date of purchase, so discount is availed)

    23,000 - 2,400 = 20,600

    20,600 x 2% = 412

    20,600 - 412 = 20,188

    Cash 20,188

    Sales Discount 412

    Accounts Receviable 20,600
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