Question

Presented below is information from Blossom Computers Incorporated. July 1 Sold $21,200 of computers to Robertson Company with terms 3/15, n/60. Blossom uses the gross method to record cash discounts. Blossom estimates allowances of $1,378 will be honored on these sales. 10 Blossom received payment from Robertson for the full amount owed from the July transactions. 17 Sold $212,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Blossom for its purchase of July 17. Prepare the necessary journal entries for Blossom Computers.

Answer 1

Answer and Explanation:

The Journal entries are shown below:-

1. Accounts receivable Dr, $21,200

To Sales revenue $21,200

(Being sales revenue is recorded)

2. Sales return and allowances Dr, $1,378

To Allowance for sales return and allowances $1,378

(Being allowance for sales return is recorded)

3. Cash Dr, $20,564

Sales discount Dr, $636 ($21,200 × 3%)

To Accounts receivable $21,200

(Being receipt and discount allowed is recorded)

4. Account receivable Dr, $212,000

To Sales revenue $212,000

(Being sales revenue is recorded)

5. Cash Dr, $212,000

To Accounts receivable $212,000

(Being receipt of payment is recorded)