Presented below is information from Windsor Computers Incorporated. Prepare the

Question

Presented below is information from Windsor Computers Incorporated.

Prepare the necessary journal entries for Windsor Computers. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

(To record sales revenue.)

(To record allowance for sales returns.)

July 10

July 1 Sold $24,600 of computers to Robertson Company with terms 2/15, n/60. Windsor uses the gross method to record cash discounts. Windsor estimates allowances of $1,366 will be honored on these sales. 10 Windsor received payment from Robertson for the full amount owed from the July transactions. 17 Sold $234,200 in computers and peripherals to The Clark Store with terms of 1/10, n/30. 30 The Clark Store paid Windsor for its purchase of July 17.

Explanation / Answer

WINDSOR COMPUTER INCORPORATED

Sales discount to robertson = 24600 x 2% =$492

Date Account Debit Credit July 1 Robertson Company 24600 Sales 24600 (To record sales revenue) July 1 Sales return & allowances 1366 Robertson Company 1366 (estimated sales returnes accounted) July 10 Robertson Company 1366 Sales return & allowance 1366 (robertson paid in full so no sale allowance occured so estmate reversed) July10 Cash 24108 Sales Discount 492 Robertson Company 24600 (full payment received from robertson company) July 17 Clark Store 234200 Sales 234200 (Sales to clark store) July 30 Cash 234200 Clark Store 234200 (Payment made by clark store cash discount not allowed as payment done after 10 days)

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