Answer:
a. Journalize Sayers’ entries to record the sale
1. Debit Cost of good sold $58,000
Credit Merchandise $58,000
2.
Debit Accounts Receivable $80,000
Credit Revenue $80,000
b. Journalize the receipt of payment within the discount period
Debit Cash $78,400
Debit Sales Discount $1,600
Credit Receivable Accounts $80,000
c.
Debit Cash $80,000
Credit Receivable Accounts $80,000
Explanation:
The terms of 2/10, n/30 means 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
a. When Sayers Co. sold merchandise, there are 2 entries record the sales:
1. Debit Cost of good sold $58,000
Credit Merchandise $58,000
2.
Debit Accounts Receivable $80,000
Credit Revenue $80,000
b. Sayers received of payment within the discount period:
Sayers offered the discount:
2% x $80,000 = $1,600
Cash Sayers Co. received: $80,000 - $1,600 = $78,400
The journal entry:
Debit Cash $78,400
Debit Sales Discount $1,600
Credit Receivable Accounts $80,000
c. The receipt of payment beyond the discount period of ten days:
There was no discount offered or received.
The journal entry:
Debit Cash $80,000
Credit Receivable Accounts $80,000
