Concord Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $64,700 with terms 3/15, n/45. On June 12, 2017, Concord received full payment for the June 1 sale. Prepare the required journal entries for Concord Co. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Question

Erica Mccarty

Business

24 November, 01:47

Concord Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $64,700 with terms 3/15, n/45. On June 12, 2017, Concord received full payment for the June 1 sale. Prepare the required journal entries for Concord Co. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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Michaela · Answer 1

Solution and Explanation:

The following journal entry will be passed in the books of accounts.

date particulars Debit Credit

June 1, 2017 Accounts receivable 64700

Sales revenue 64700

(Being sales on accounts recorded)

June 17, 2017 Cash 62759

Sales discounts 1941

Accounts receivable 64700

(Being cash received from the customers recorded)

Working notes:

The Sales discounts : $64700 multiply with 3 percent = $ 1941

Cash that will be received will be after deducting the sales discount = $64700 minus 1941 = $62759