Question

On September 12, Vander Company sold merchandise in the amount of $6,900 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5,100. Vander uses the periodic inventory system and the gross method of accounting for sales. The journal entry or entries that Vander will make on September 12 is (are):

Answer 1

The journal entry for the following would be as follows:

Step-by-step explanation:

September 12 Cash A/c.................................................Dr $6,762

Sales discount A/c..............................Dr $138

To Accounts Receivable A/c.........Cr $6,900

As company received the cash against the sale of merchandise, asset is increasing and increase in asset will be debited. Therefore, the cash account is debited. And payment is made within the time period so discount of 2% is allowed, therefore, it is debited. And the accounts receivable account is credited with whole amount.

Cash A/c..........................................Dr $6,900

To Accounts Receivable A/c.........Cr $6,900

Cash A/c..........................................Dr $5,100

To Accounts Receivable A/c.........Cr $5,100

As company received the cash against the sale of merchandise, asset is increasing and increase in asset will be debited. And the accounts receivable account is credited.

Working Note:

= $6,900 × 2%

= $138