Question

Swifty co. uses the gross method to record sales made on credit. On June 1, 2025, it made sales of $42,000 with terms 3/15, n/45. On June 12, 2025, Swifty received full payment for the June 1 sale. Prepare the required journal entries for Swifty co. (If no entry is required, select 'no entry' for the account titles and enter '0' for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)

Answer 1

To record the sale made by Swifty Co. on June 1, 2025, debit Accounts Receivable and credit Sales Revenue. On June 12, 2025, when full payment is received, debit Cash and credit Accounts Receivable.

Step-by-step explanation:

To record the sale made by Swifty Co. on June 1, 2025, the journal entry is as follows:

1. Debit Accounts Receivable $42,000
2. Credit Sales Revenue $42,000

On June 12, 2025, when Swifty received full payment for the June 1 sale, the journal entry is:

1. Debit Cash $42,000
2. Credit Accounts Receivable $42,000