Answer:
On March 1,
Debit Receivable Accounts $22,400
Credit Sales $22,400
On March 6
Debit Sales $1,200
Credit Receivable Accounts $1,200
On March 11,
Debit Cash $20,776
Debit Sales Discount $424
Credit Accounts Receivable $21,200
Explanation:
On March 1,
Debit Receivable Accounts $22,400
Credit Sales $22,400
On March 6
Debit Sales $1,200
Credit Receivable Accounts $1,200
On March 11,
Credit terms of 2/10, net 45 means that 2% discount for the payment within 10 days or the full amount to be paid within 45 days.
Marin receives payment from Amelia on 11 March, early enough to offer a 2% discount.
The amount of discount: ($22,400 - $1,200) x 2% = $424
The journal entry:
Debit Cash $20,776
Debit Sales Discount $424
Credit Accounts Receivable $21,200
