Question

Restin Co. uses the gross method to record sales made on credit. On June 1, 2014, it made sales of $68,300 with terms 3/15, n/45. On June 12, 2014, Restin received full payment for the June 1 sale. Prepare the required journal entries for Restin Co.

Answer 1

The journal entries for Restin Co. would be as follows: On June 1, 2014: Debit: Accounts Receivable - $68,300, Credit: Sales Revenue - $68,300. On June 12, 2014: Debit: Cash - $68,300, Credit: Accounts Receivable - $68,300.

Step-by-step explanation:

The journal entries for Restin Co. would be as follows:

1. On June 1, 2014:

• Debit: Accounts Receivable - $68,300
• Credit: Sales Revenue - $68,300

On June 12, 2014:

• Debit: Cash - $68,300
• Credit: Accounts Receivable - $68,300

The first journal entry reflects the sale made on credit, increasing the accounts receivable and recognizing the sales revenue. The second entry records the receipt of full payment, reducing the accounts receivable and increasing the cash.