On september 12, vander company sold merchandise in the amount of $5,800 to jepson company, with credit terms of 2/10, n/30. the

Question

3 years ago

7

On september 12, vander company sold merchandise in the amount of $5,800 to jepson company, with credit terms of 2/10, n/30. the

cost of the items sold is $4,000. jepson uses the periodic inventory system and the gross method of accounting for purchases. jepson pays the invoice on september 18, and takes the appropriate discount. the journal entry that jepson makes on september 18 is:

Business

2 answers:

kirill115 [55] · Answer 1 · 2022-08-04T08:50:53+03:00

kirill115 [55]3 years ago

7 0

Dang I used to know this but I completely forgot I will try to answer if it comes back to me

gavmur [86] · Answer 2 · 2022-08-04T10:56:53+03:00

Answer:

As of September 18th, the postings will be:

Debit Cash - 5,684

Debit Sales Discount - 116

Credit Account Receivable - 5,800

Being cash payment on sold merchandise.

Explanation:

The sales amount of the merchandise is $5,800 with a discount of 2% if payment is made by Jepson within 30 days.

Therefore the Journal entry is to recognise the total amount $5800 as a credit sale and debit Accounts Receivable.

Jepson finally made the payment on September 18th which is within the Discount period. The discount which is calculated as $\frac{2}{100} * 5800$ = 116 is recognised and deducted from the amount payable.

Please see the attached for expatiated postings.