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128. On March 12, 2016, Admiral Electronics sold 20 fax machines

Question : 128. On March 12, 2016, Admiral Electronics sold 20 fax machines : 1412689

 

 

128.

On March 12, 2016, Admiral Electronics sold 20 fax machines to Cool Stuff Co. for $10,000, subject to terms 2/10, n/30. Admiral uses the gross method of accounting for sales discounts.

Required:

1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on March 20, 2016.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on April 5, 2016. 
 
 

 

 

 

 

 

129.

On October 18, 2016, Flying Chicken sold 2,000 pounds of chicken to Healthier Grocery for $3,400, subject to terms 2/10, n/30. Flying Chicken uses the gross method of accounting for sales discounts.

Required:

1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on October 26, 2016.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on November 15, 2016. 
 
 

 

 

 

 

 

130.

On June 14, 2016, Rumsfeld Company sold 100 air-conditioning units to Powell Heating and Cooling. The units list for $600 each, but Powell was granted a 25% trade discount. All of Rumfeld's sales are subject to terms 2/10, n/30. Rumsfeld uses the gross method of accounting for sales discounts.

Required:

1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on June 22, 2016.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on July 10, 2016. 
 
 

 

 

 

 

 

 

Solution
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