Question

Sales-related transactions

Sayers Co. sold merchandise on account to a customer for $84,000 terms 2/10, n/30. The cost of the goods sold was $62,000.

a. Journalize Sayers’ entries to record the sale.

b. Journalize the receipt of payment within the discount period.

c. Journalize the entry to record the receipt of payment beyond the discount period of ten days.

Answer 1

Answer:
(a)
Account Titles and Explanation	Debit	Credit
Accounts Receivable ( $ 84,000 (-) 2% )	$ 82,320
Sales		$ 82,320
(To record the Sale )
Cost of goods sold	$ 62,000
Inventory		$ 62,000
(To record the Cost of goods sold)
(b)
Account Titles and Explanation	Debit	Credit
Cash	$ 82,320
Accounts Receivable		$ 82,320
(To record the receipt of payment )
(c )
Account Titles and Explanation	Debit	Credit
Cash	$ 84,000
Accounts Receivable		$ 82,320
Sales		$ 1,680
(To record the receipt of payment beyond the discount period )