Question

Concord Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $64,700 with terms 3/15, n/45. On June 12, 2017, Concord received full payment for the June 1 sale. Prepare the required journal entries for Concord 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.)

Answer 1

Solution and Explanation:

The following journal entry will be passed in the books of accounts.

date particulars Debit Credit

June 1, 2017 Accounts receivable 64700

Sales revenue 64700

( Being sales on accounts recorded)

June 17, 2017 Cash 62759

Sales discounts 1941

Accounts receivable 64700

(Being cash received from the customers recorded)

Working notes:

The Sales discounts : $64700 multiply with 3 percent = $ 1941

Cash that will be received will be after deducting the sales discount = $64700 minus 1941 = $62759