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In: Accounting

When recording a cash receipt from a customer within the discount period, the business records a...

When recording a cash receipt from a customer within the discount period, the business records a debit to Cash for the amount received, a debit to Sales Discounts for the amount of the discount, and a credit to Accounts Receivable for the full amount of the invoice less any returns and allowances.

Record the following sales transactions in general journal form on the books of Collins Company (the seller).

a. Sold merchandise on account to Gallagher Company, invoice No. 1501, $2,000; terms 1/10, n/30.
b. Issued credit memo No. 125 to Gallagher Company for damaged merchandise, $250.
c. Gallagher Company paid the account in full within the discount period.

If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.

GENERAL JOURNAL PAGE 1
DESCRIPTION POST. REF. DEBIT CREDIT
a. Accounts Receivable, Gallagher Company
     Sales
(Sold merchandise to Gallagher Company , Inv. No. 1501)
b. Sales Returns and Allowances
     Accounts Receivable, Gallagher Company
(Issued credit memo No. 125)
c. Cash
Sales Discounts
Accounts Receivable, Gallagher Company
(Received payment in full.)

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The answer has been presented in the supporting sheets. All the parts has been solved with detailed explanation and format. For detailed answers refer to the supporting sheet.

ekkarill92 answered 2 years ago
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