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