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Solnce55 [7]
3 years ago
10

Gamegirl Inc., has the following transactions during August.

Business
1 answer:
Alekssandra [29.7K]3 years ago
7 0

Answer:

Explanation:

1.August 6.

Account Receivable-Ds Unlimited  (64*170)        Dr.$10,880

Sales Revenue                                                       Cr.$10,880

Cost of Goods Sold  ($150*64)                Dr.$9,600

Inventory                                                    Cr.$9,600

2.August 10.

Inventory/Sales Revenue         (4*170)           Dr.$680

Account Receivable-Ds Unlimited                Cr.$680

3. August 14.

  Cash                     (10,880-680)*99%         Dr.$10,098

  Cash Discount                                            Dr.$     102

   Accounts Receivable                                Cr.$ 10,200      

Note:

The gross method of discount is used which means at time of receipt, discount impact is taken. In this question 1/10 means 1% discount allowed if payment made within 10 days of sale. This means DS unlimited qualifies for cash discount as payment is received on 14 August

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