Answer:
Account Debit Credit
Cash($8540-$170.8=$8369.2) $8369.2
Sales Discount ($8540*(2%*$8540)) $170.8
Account Receivable( $9400 - $860) $8540
Step-by-step explanation:
The journal entries made earlier are:
Account Debit Credit
On Sep 12:
Account Receivable $9400
Sales revenue $9400
On Sep 14:
Sales Returns $860
Account Receivable $860
On Sep 18:
Now we will calculate the Account Receivable:
Account Receivable = $9400 - $860
Account Receivable = $8540
Now we will calculate the Sales Discount:
(Discount is 2%)
Sales Discount= $8540*(0.02)
Sales Discount= $170.8
Now we will Calculate the Cash:
Cash= Account Receivable- Sales Discount
Cash=$8540-$170.8
Cash=$8369.2
The journal Entry on Sep 18 is:
Account Debit Credit
Cash($8540-$170.8=$8369.2) $8369.2
Sales Discount ($8540*(2%*$8540)) $170.8
Account Receivable( $9400 - $860) $8540
