Question

Record the purchase of services on account.On March 12, Medical Waste Services provides services on account to Grace Hospital for $11,000, terms 2/10, n/30. Grace does not pay for services until March 31, missing the 2% sales discount. Required: For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Answer:

Explanation:

The journal entries are shown below:

On March 12:

Accounts receivable A/c Dr $11,000

    To Service revenue A/c            $11,000

(Being the revenue is recorded)

On March 31:

Cash A/c Dr $11,000

  To Accounts receivable A/c $11,000

(Being cash collection is recorded)

We do not consider the sales discount. Hence, ignored it