Ask Question
BusinessBusiness
29 December, 18:12

Swifty Corporation made a $25500 sale on account with the following terms: 2/15, n/30. If the company uses the net method to record sales made on credit, what is/are the debit (s) in the journal entry to record the sale?

+2
Answers (1)
  1. 29 December, 18:16
    0
    The debit in the journal entry to record the sale is of Accounts receivable debited by $24990

    Explanation:

    The net method assumes that every customer will avail the cash discount and pay within the discount terms. Thus, under the net method, the sale is recorded at discounted price. Th entry under net method will be,

    Accounts receivable $24990 Dr

    Sales revenue $24990 Cr

    The sale of $25500 is recorded after deducting the discount. The after discount or net value of sale is:

    Net value of sale = 25500 * 0.98 = $24990
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Swifty Corporation made a $25500 sale on account with the following terms: 2/15, n/30. If the company uses the net method to record sales ...” 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
For four years, Marty Campbell invested $8,500 each year in Harley-Davidson. The stock was selling for $72 in 2014, $74 in 2015, $56 in 2016, and $74 in 2017. a. What is Marty's total investment in Harley-Davidson? b.
Answers (1)
Blackberry syrup can be sold for $2.90 per unit, or it can be processed further into a specialty blackberry juice and then sold for $5.40 per unit.
Answers (1)
There are many unstated assumptions in the problem given above. Even if the mathematical solution is to make only one or two types of bicycles, there may be demand for the type (s) not being made, which would create problems for the company.
Answers (1)
The board of directors of a corporation: multiple choice may not also be executive officers of the corporation, due to the separate entity principle. do not have the power to bind the corporation to contracts, due to lack of mutual agency.
Answers (1)
Which statement is consistent with the law of demand? A reduction in market price will lead to an increase in quantity demanded. An increase in market price will lead to an increase in quantity demanded.
Answers (1)
New Questions in Business
Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $130,000 7-years from now. How much must Carol deposit to accomplish her goal?
Answers (1)
At the end of 2016, Nash's Trading Post, LLC has accounts receivable of $635,600 and an allowance for doubtful accounts of $23,140. On January 24, 2017, it is learned that the company's receivable from Madonna Inc.
Answers (1)
United Birdseed is expected to pay the following dividends over the next three years: After year 3, dividends are expected to grow by 5% per year forever. The expected/required return on United Birdseed stock is 10%. What is the stock price?
Answers (1)
Halestorm Corporation's common stock has a beta of 1.13. Assume the risk-free rate is 4.8 percent and the expected return on the market is 12.3 percent. What is the company's cost of equity capita?
Answers (1)
A monopoly creates a deadweight loss to society because it produces less output than the socially efficient level. a. true b. false
Answers (1)
Home » Business » Swifty Corporation made a $25500 sale on account with the following terms: 2/15, n/30. If the company uses the net method to record sales made on credit, what is/are the debit (s) in the journal entry to record the sale?
Sign Up Forgot Password?