Answer:
November 17, 2021
Dr. Inventory $81,000
Cr. Account payable $81,000
November 26, 2021
Dr. Account Payable $81,000
Cr. Discount Income $2,430
Cr. Cash $78,570
December 15, 2021
Dr. Account payable $81,000
Cr. Cash $81,000
Explanation:
Sales Amount = 270 units x $400 = $108,000
Discount = $108,00 x 25% = $27,000
Net Sales = $108,000 - $27,000 = $81,000
Terms of sale 3/10, n/30 means there is a discount of 3% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
Payment made on
November 26, 2021
As the payment is made within discount period, so discount will be availed
Discount = $81,000 x 3% = $2,430
Cash received = $81,000 - $2,430 = $78,570
December 15, 2021
As the payment is made after discount period, so no discount will be availed. Full payment of $81,000 will be made.
