On March 12, Medical Waste Services provides services on account to Grace Hospital for $11,000, terms 2/10, n/30. Grace pays for those services on March 20.

Required:

For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 20. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Question

Mathematics

Skye Aguirre

11 May, 18:14

On March 12, Medical Waste Services provides services on account to Grace Hospital for $11,000, terms 2/10, n/30. Grace pays for those services on March 20.

Required:

For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 20. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Answers (1)

Know the Answer?

Nevaeh Swanson · Answer 1

Answer and Step-by-step explanation:

The journal entries are shown below:

On March 12

Account receivable A/c Dr $11,000

To Sales $11,000

(Being the goods are sold on credit)

On March 11

Cash $10,780

Sales discount ($11,000 * 2%) $220

To Account receivable $11,000

(Being the cash received is recorded)

Only these two entries are recorded

Since the payment is made within 10 days so Grace hospital is eligible for the discount