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QS 4-19B Recording estimates of future discounts LO P6 ProBuilder has the following June 30 fiscal-year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $10,200. Of
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19 votes
QS 4-19B Recording estimates of future discounts LO P6 ProBuilder has the following June 30 fiscal-year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $10,200. Of the $10,200 of receivables, $2,100 are within a 3% discount period, meaning that it expects buyers to take $63 in future discounts arising from this period’s sales. a. Prepare the June 30 fiscal-year-end adjusting journal entry for future sales discounts.

User Vladislav Ihost
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20 votes
20 votes

Answer:

Dr Sales Discount $63

Cr Allowance for Sales Discount $63

Step-by-step explanation:

Preparation of the June 30 fiscal-year-end adjusting journal entry for future sales discounts.

Based on the information given the June 30 fiscal-year-end adjusting journal entry for future sales discounts will be:

30-June

Dr Sales Discount $63

Cr Allowance for Sales Discount $63

(3%*$2,100)

(To record future sales discounts)

User Aleks Vujic
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