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ANEK [815]
3 years ago
8

Concord Company sells merchandise on account for $3300 to Pharoah Company with credit terms of 1/10, n/30. Pharoah Company retur

ns $800 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Concord Company make upon receipt of the check
Business
1 answer:
Oksi-84 [34.3K]3 years ago
5 0

Answer:

Dr Cash $825

Cr Sales Returns and Allowances $800

Cr Sales Discounts $25

Explanation:

Preparation of the journal entry that Concord Company make upon receipt of the check

Dr Cash $825

($800+$25)

Cr Sales Returns and Allowances $800

Cr Sales Discounts $25

(To record receipt of the check)

Sales discount=(Sales Price -Sales return) × 1%

Sales discount=($3300 - $800) × 1% = $25

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