Question

oswego clay pipe company sold $46,000 of pipe to southeast water district 45 on april 12 of the current year with terms 215/ , n60/ . oswego uses the gross method of accounting for sales discounts. what entry would oswego make on april 23, assuming the customer made the correct payment on that date?

Answer 1

The journal entry that Oswego Clay Pipe Company would make on April 23, assuming the customer made the correct payment on that date, is to debit the Accounts Receivable and credit Sales.

Step-by-step explanation:

The journal entry that Oswego Clay Pipe Company would make on April 23, assuming the customer made the correct payment on that date, would be as follows:

Debit: Accounts Receivable - Southeast Water District 45 ($46,000)

Credit: Sales ($46,000)

This entry is made to record the reduction of the Accounts Receivable balance as the customer made the correct payment for the pipe purchase.