Question

Presented below is information from Perez Computers Incorporated. July 1 Sold $20,000 of computers to Robertson Company with terms 3/15, n/60. Perez uses the gross method to record cash discounts. 10 Perez received payment from Robertson for the full amount owed from the July transactions. 17 Sold $200,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Perez for its purchase of July 17

Answer 1

Explanation:

The Journal Entry is shown below:-

1. Accounts Receivable Dr,            $20,000

           To cash revenue                                $20,000

(Being computer sold is recorded)

2. Cash Dr,                                         $19,400

    Sales discount Dr,                         $600

             To accounts receivable                    $20,000

(Being cash is received)

3. Accounts receivable Dr,               $200,000

              To sales revenue                               $200,000

(Being sales revenue is recorded)

4. Cash Dr,                                          $200,000

               To accounts receivable                     $200,000

(Being cash is recorded)