Question

On June 7, Pixer Co. sells $1500 of merchandise to Jasmine Co. on account. Jasmine Co. pays for this merchandise on June 21. a. Prepare the entry on Pixer's books to record the sale. b. Prepare the entry on Pixer's books to record the receipt of payment.

Answer 1

Answer:

a.

Debit Accounts Receivable $1,500

Credit Sales $1,500

b.

Debit Cash $1,500

Credit Accounts Receivable $1,500

Explanation:

On June 7, Pixer Co. sells $1500 of merchandise to Jasmine Co. on account.

Pixer's books records the sale by the entry:

Debit Accounts Receivable $1,500

Credit Sales $1,500

On June 21, Jasmine Co. pays for this merchandise. Pixer's books records the receipt of payment by the entry:

Debit Cash $1,500

Credit Accounts Receivable $1,500