On March 1, Lincoln sold merchandise on account to Pina Colada Company for $29,400, terms 1/10, net 45. On March 6, Pina Colada returns merchandise with a sales price of $2,200. On March 11, Lincoln receives payment from Pina Colada for the balance due. Prepare journal entries to record the March transactions on Lincoln's books. (You may ignore cost of goods sold entries and explanations.

Question

Valentina Dean

Business

15 April, 04:18

On March 1, Lincoln sold merchandise on account to Pina Colada Company for $29,400, terms 1/10, net 45. On March 6, Pina Colada returns merchandise with a sales price of $2,200. On March 11, Lincoln receives payment from Pina Colada for the balance due. Prepare journal entries to record the March transactions on Lincoln's books. (You may ignore cost of goods sold entries and explanations.

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Answers (1)

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Nola Keller · Answer 1

The Journal entries with their narration is shown below:-

Explanation:

The Journal entry is shown below:-

1. Account receivable Dr, $29,400

To Sales revenue $29,400

(Being Sales revenue is recorded)

2. Sales return and allowance Dr, $2,200

To Account receivable $2,200

(Being Sales return is recorded)

3. Cash Dr, $26,928

($29,400 - $2,200) * 99%

Sales discount Dr, $272

To Account receivable $27,200

($29,400 - $2,200)

(Being cash is recorded)