Exercise 7-6 Presented below is information from Headland Computers Incorporated

Question

Exercise 7-6 Presented below is information from Headland Computers Incorporated July 1 Sold $20,200 of computers to Robertson Company with terms 2/15, n/60. Headland uses the gross method to record cash discounts. Headland estimates allowances of $1,174 will be 10 17 30 honored on these sales. Headland received payment from Robertson for the full amount owed from the July transactions Sold $247,000 in computers and peripherals to The Clark Store with terms of 1/10, n/30 The Clark Store paid Headland for its purchase of July 17 Prepare the necessary journal entries for Headland 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

Explanation / Answer

Journal entries Date Account Titles and Explanation Debit Credit July.1 Accounts Receivables - Robertson Company $20,200 Sales $20,200 (to record sales revenue) No Journal Entry July.10 Cash $19,796 Sales Discounts $404 Accounts Receivables - Robertson Company $20,200 (to record cash received on sale transaction on July.1) July.17 Accounts Receivables - The Clark Store $247,000 Sales $247,000 (to record sales revenue) July.30 Cash $247,000 Accounts Receivables - The Clark Store $247,000 (to record cash received on sale transaction on July.17)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.