Sales Discount Recorded at Gross Nevada Company provided services with a list pr
ID: 2462316 • Letter: S
Question
Sales Discount Recorded at Gross
Nevada Company provided services with a list price of $48,500 to Small Enterprises with terms 2/15, n/45. Nevada records sales at gross.
Required:
1. Prepare the entry to record this sale in Nevada's journal.
Account and Explanation
Debit
Credit
Correct 5 of Item 1
Correct 6 of Item 1
Correct 7 of Item 1
Correct 8 of Item 1
Record sale
Hide FeedbackShow All Feedback
Check My Work Feedback
Post Submission Feedback
Solution
2. Prepare the entry for Nevada's journal to record receipt of cash in payment for the sale within the discount period. If an amount box does not require an entry, leave it blank.
Account and Explanation
Debit
Credit
Accounts Payable
Accounts Receivable
Cash
Notes Receivable
Sales Revenue
Correct 5 of Item 2
Correct 6 of Item 2
Correct 7 of Item 2
Accounts Payable
Accounts Receivable
Sales Discounts
Sales Returns and Allowances
Sales Revenue
Correct 8 of Item 2
Correct 9 of Item 2
Correct 10 of Item 2
Accounts Payable
Accounts Receivable
Cash
Sales Discounts
Unearned Sales Revenue
Correct 11 of Item 2
Correct 12 of Item 2
Correct 13 of Item 2
Record collection within discount period
Hide FeedbackShow All Feedback
Check My Work Feedback
Post Submission Feedback
Solution
3. Prepare the entry for Nevada's journal to record receipt of cash in payment for the sale after the discount period.
Account and Explanation
Debit
Credit
Correct 5 of Item 3
Correct 6 of Item 3
Correct 7 of Item 3
Correct 8 of Item 3
Record collection after discount period
Hide1. Prepare the entry to record this sale in Nevada's journal.
Account and Explanation
Debit
Credit
Correct 5 of Item 1
Correct 6 of Item 1
Correct 7 of Item 1
Correct 8 of Item 1
Record sale
Explanation / Answer
Date Title Debit credit 1 Accounts receivable 48500 sales 48500 [being sales made recorded 2 cash 47530 sales discount [48500* .02] 970 Accounts receivable 48500 [being amount collected within discount period] 3 cash 48500 Accounts receivable 48500 [being amount collected after discount period]
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.