Answer:
See explanation section.
Explanation:
Moloney Meat Distributors
Journal Entries
Particulars Debit($) Credit($)
April - 1 Accounts Receivable 2,100
Sales Revenue 2,100
(Assuming it is periodical, we need not show cost of goods sold journal. Since the payment is within the discount period, there will be a separate journal entry is needed. However, a compound journal entry can illustrate the answer.)
April - 10 Sales Discount 21
Accounts Receivables 21
(1/10, n/30 means the buyer will get a 1% discount, if he pays within 10 days, however, the buyer has to pay within 30 days.
As the payment is made within the discount period, the buyer receives the discount).
April - 10 Cash 2,079
Accounts Receivables 2,079
(as the buyer gets the rebate, he will pay (2100 - 21=2,079 during the date of payment).
