Question

Lynx Inc. sells apparel merchandise to Dyson Inc. at a gross sales price of $980, credit terms 2/10, n/30 on July 10, 2020. Dyson pays for the merchandise in full on July 19, 2020.

Required:
Record the entries required on July 10, 2020, and July 19, 2020, for Lynx Inc. Assuming use of the gross method in accounting for credit sales. Omit the cost of goods sold entry.

Answer 1

Step-by-step explanation:

July 10

Dr. Accounts Receivable (98% of sales because of 2% discount) 960

Cr. Sales Revenue 960

July 19

Dr. Cash 960

Cr. Accounts Receivable 960