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15 January, 09:51

On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for sales discounts. What is the correct entry for Flores on November 10?

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  1. 15 January, 10:18
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    Dr Accounts receivable 7,840 [ (1-0.02) * 8000]

    Cr Sales 7,840

    Dr Accounts receivable 8,000

    Cr Sales 8,000

    Dr Accounts receivable 7,840

    Cr Sales discounts 160 [0.02*8000]

    Cr Sales 8,000

    Dr Accounts receivable 8,000

    Cr Sales discounts 160

    Cr Sales 7,840
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