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G GoogleApple iCloud Yahoo ) Bing D wikipedia D Facebook Twitter D Linkedin D The weather Channel D Yeo D Good Luck! Help Save & Exit S On September 12, Vander Company sold merchandise in the amount of $4,600 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $3,175. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $400 and the cost of the merchandise returned is $280. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is: 8 Multiple Choice Cash 4,600.00 Accounts receivable 4,600.00 3,175.00 Cash 3,175.00 Accounts receivable Next > Prey 18 of 50

Explanation / Answer

Answer is option (3)    Journal entry for Payment made on September 18 Date Account tiltes Debit credit Sep-18 Cash A/c $4116 Sales Discounts A/c $84         To Accounts receivables A/c $4200 (Being payment receved from Jepson has been recorded) Sales Discount = 2% * ($4600-$400) =$84 Cash received = $4200-$84=$4116

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