Question

On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,300, terms 3/10, n/30. Grace does not pay for services until March 31, missing the 3% sales discount. Required: For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Answer and Explanation:

The journal entry is shown below:

Account receivable Dr $10,300

To Service revenue $10,300

(Being service provided in account)

Cash Dr $10,300

To Account receivable $10,300

(Being cash reciept is recorded)

These two entries should be recorded and the same is to be considered

No cash discount is given as the payment is not made within 10 days