Ask Question
BusinessBusiness
10 December, 10:55

Culver Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $51,000 with terms 4/15, n/45. On June 12, 2020, Culver received full payment for the June 1 sale. Prepare the required journal entries for Culver Co.

+3
Answers (1)
  1. 10 December, 10:58
    0
    Answer and Explanation:

    Culver Co.

    Journal Entries

    Debit Credit

    June 1, 2020 Accounts receivables $51,000

    Sales $51,000

    Recording sale of goods on credit.

    June 12, 2020 Bank $48,960

    Sales discount (Working 1) $2,040

    Accounts receivables $51,000

    Recording cash received from customer.

    Working 1:

    As per the terms of sale, the customer receives 4% cash discount if the payment is made within 15 days. The customer makes the payment on the 12th day, and thus, receives 4% cash discount.

    Cash discount = 4% x $51,000 = $2,040

    Amount received from customer = $51,000 - $2,040 = $48,960
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Culver Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $51,000 with terms 4/15, n/45. On June ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
East Coast Marina has 148,000 shares of stock outstanding. The current market value of the firm is $11.68 million. The company has capital in excess of par value of $1.7 million and a common stock account value of $148,000.
Answers (1)
Suppose that the prices of dairy products have risen relatively less than prices in general over the last several years. To which problem in the construction of the CPI is this situation most relevant?
Answers (2)
Review the steps in the accounting cycle and answer the following questions: 1. What is the first step? 2. Are any steps optional? 3. Which steps are completed throughout the period? 4. Which steps are completed only at the end of the period? 5.
Answers (1)
Under which circumstance might you receive a tax refund from IRS
Answers (1)
Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $2 today and then you sold it for $95.
Answers (1)
New Questions in Business
Now consider a strangle using the same call with a strike price of $100 and a different put with a strike price of $95. Both have the same expiration date.
Answers (1)
Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its costs of equity is 15 percent, and the cost of debt is 8 Percent. The relevant tax rate is 35 percent.
Answers (1)
That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a (n) a. balance sheet b. trial balance c. chart of accounts d. income statement
Answers (1)
Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case.
Answers (1)
Suppose during 2014 that Federal Express reported the following information (in millions) : net sales of $35,497 and net income of $98.
Answers (2)
Home » Business » Culver Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $51,000 with terms 4/15, n/45. On June 12, 2020, Culver received full payment for the June 1 sale. Prepare the required journal entries for Culver Co.
Sign Up Forgot Password?