Question

On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,000, terms 3/10, n/30. Grace does not pay for services until March 31, missing the 3% sales discount. Required: For Grace Hospital, record the purchase of services on account on March 12 and the payment of cash on March 31. (If no entry is required for a 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:

Service fee expense A/c Dr $10,000

        To Accounts payable                  $10,000

(Being purchase of service is recorded)

On March 31:

Accounts payable  A/c Dr $10,000

      To Cash A/c                                    $10,000

(Being cash payment is made)