Question

please net price method

13. The following are transactions of the Morrison Company: On November 5, sold merchandise on account for $46,000 with terms of 3/15, n/30. a. On November 20, payment was received on $32,000 worth of merchandise sold on November 5. On December 5, further collections were made on $8,000 of merchandise sold on November 5 c. On December 8, merchandise sold for $4,000 on November 5 was returned by the purchaser and credit was granted by Morrison Company. Hint: receivable had not been d. collected. quired: Prepare below the journal entries required for each transaction a-d. Assume that the N ice method is used to record sales discounts.. (10 pts)

Answer 1

Journal Account Titles and Explanation 5-Nov Accounts receivable (46000*97 %) Debit ($) Credit ($) No. Date 44,620 а 44,620 Sales (To record the credit sales) 32,000 20-Nov Cash b Accounts receivable 32,000 (To record the collection from debtors) 5-Dec Cash 8,000 C 8,000 Accounts receivable (To record the collection from debtors) 4,000 8-Dec Sales return Accounts receivable 4,000 (To record the sales return) Note: In Net Price Method, sales are recorded at net price after discount Please give likes for the hard work.