Question

bartleby Bramble Co. uses the gross method to record sales made on credit. On July 1, 2020, it made sales of 59,000 with terms 2/10 n/30. On July 9, 2020, Bramble received full payment for the July 1 sale. Prepare the required journal entries for Bramble Co.

Answer 1

Dr cash $57,820.00

Dr sales discount $1180.00

Cr accounts receivable $59,000.00

Step-by-step explanation:

Since payment was made during the discount period,hence the payment received would have been net of discount of 2%.

Discount=2%*$59,000=$1180

cash received=$59,000-$1,180=$ 57,820.00

The cash would be debited to cash account and the discount would also b debited to sales discount with the full amount being being credited to accounts receivable.