Answer:
Torres Company received $4,800 on May 12.
Explanation:
<u>When The Sale was made, the following entries apply :</u>
J1
Trade Receivable $5,000 (debit)
Sales Revenue $5,000 (credit)
J2
Cost of Sales $3,000 (debit)
Merchandise $3,000 (credit)
J3
Freight Expenses $110 (debit)
Cash $110 (credit)
<u>When Campbell Company returned Merchandise :</u>
J1
Sales Revenue $200 (debit)
Trade Receivable $200 (credit)
<u>When Campbell Company pays for the goods</u>
The payment is made 2 days out of the discount period, therefore not eligible for discount.
<em>Settle amount in full less Return Allowance of $200</em>
Trade Receivable $4,800 (debit)
Cash $4,800 (credit)
Conclusion :
Torres Company received $4,800 on May 12.
