On January 6, Nash's Trading Post, LLC sells merchandise on account to Harley Inc. for $11,200, terms 2/10, n/30. On January 16, Harley pays the amount due. Prepare the entries on Nash's Trading Post, LLC's books to record the sale and related collection. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question

Izaiah Chang

Business

12 March, 13:20

On January 6, Nash's Trading Post, LLC sells merchandise on account to Harley Inc. for $11,200, terms 2/10, n/30. On January 16, Harley pays the amount due. Prepare the entries on Nash's Trading Post, LLC's books to record the sale and related collection. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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Roselyn · Answer 1

The journal entries are shown below:

On January 16

Accounts receivable A/c Dr $11,200

To Sales revenue A/c $11,200

(Being goods are sold on credit)

On January 16

Cash A/c Dr $10,976

Sales Discount A/c Dr $224 ($11,200 * 2%)

To Accounts receivable $11,200

(Being cash received recorded)

The remaining amount would be credited to the cash account.