Question

Question 1:

• On July 1, Maged Co. sold merchandise on account to Hani Co. for $30,000 terms 2/10, n/30.
• On July 5, Hani returns merchandise worth $5000 to Maged Co.
• On July 10, Maged Co. receives payment from Hani Co. for the balance due.
• On Sept, 5, Maged Co. sold merchandise on account to Samy for $20,000 terms 2/10, n/30.
• On Sept. 20 Samy paid the amount due to Maged Co.
• Maged Co. writes off Salem Co. $4000 balance as uncollectible on December 12.

Prepare the journal entry to record this transaction on the books of Maged Co. and prepare Accounts receivable account (T account).

Date		Dr	Cr

                                  Dr                                Accounts receivable                                   Cr

Answer 1

Date	General Journal	Debit	Credit		Accounts Receivable
July 1	Accounts Receivable	30,000			30,000
	Sales		30,000		20,000	5,000
						25,000
July 5	Sales Return and Allowance	5,000				20,000
	Accounts Receivable		5,000			4,000
July 10	Cash	24,500
	Sales Discount	500
	Accounts Receivable		25,000
Sep 5	Accounts Receivable	20,000
	Sales		20,000
Sep 20	Cash	20,000
	Accounts Receivable		20,000
Dec 12	Allowance for Doubtful Debts	4,000
	Accounts Receivable		4,000