Question

Global Company purchased merchandise on account from Planet Company for $56,000 with terms 1/15, net 45. Global Company returned $6,000 of the merchandise and received full credit from Planet Company. What will be included in the journal entry for the payment (assume that the amount due was paid within the discount period)?

Answer 1

cash 49,500 debit

discount 500 debit

account receivable 50,000 credit

Step-by-step explanation:

account receivable 56,000

sales revenue 56,000

to record sales

returns 6,000

account receivable 6,000

to record return of goods

56,000

-6,000 return

50,000 account receivable

x1% discount 500 (payment within discount period)

50,000 - 500= 49,500 cash proceed