Question

On December​ 1, Macy Company sold merchandise with a selling price of $ 5,000 on account to Mrs.​ Jorgensen, with terms 4​/10, ​n/30. On December​ 3, Mrs. Jorgensen returned merchandise with a selling price of $ 900. Mrs. Jorgensen paid the amount due on December 9. What journal entry did Macy Company prepare on December 9 assuming the gross method is​ used?

Answer 1

Step-by-step explanation:

The journal entry is shown below:

Cash A/c Dr 3,936

To Accounts receivable A/c 3,936

(Being payment is received within the discount period)

The amount of cash received is shown below:

= Sales - returned goods - discount

= $5,000 - $900 - 4%

= 3,936

Since the cash is received so we debited the cash and credited the account receivable account