Record the following transactions on the books of RAS Co.

(a) On July 1, RAS Co. sold merchandise on account to Waegelein Inc. for $16,300, terms 2/10, n/30.

(b) On July 8, Waegelein Inc. returned merchandise worth $4,800 to RAS Co.

(c) On July 11, Waegelein Inc. paid for the merchandise.

Accounts Receivables 16300 debit

Sales Revenues 16300 credit

--to record purchase--

sales allowance & returns 4800 debit

accounts receivables 4800 credit

--to record sales allowance--

Cash 11270

sales discounts 230

Accounts receivable 11500

--to record collectiong within discount--

Explanation:

W record the sale for the nominal amount.

When the custoemr return goods we use sales allowance and returns and also, we decrease the account of the customer as now their are in debt for a lesser amount.

We calcualte the balance of the account:

16,300 - 4,800 = 11,500

we apply the discount as it is within discount date

11,500 x 2% = 230

last, we determinate the cash collected:

11,200 nominal - 230 discount = 11,270