Brief Exercise 7-3 Cheyenne Co. uses the net method to account for cash discount

Question

Brief Exercise 7-3 Cheyenne Co. uses the net method to account for cash discounts. On June 1, 2017, it made sales of $62,900 with terms 3/15, n/45 On June 12, 2017, Cheyenne received full payment for the June 1 sale. Prepare the required journal entries for Cheyenne Co. (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. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: 0 of 15 used SAVE FOR LATERSU SUBMIT ANSWER

Explanation / Answer

7-3 Cheyenne Co.

7-2 Concord Co.

Date Account Titles and Explanation Debit Credit Jun. 1, 2017 Accounts receivable 61013 Sales revenue [$62900 - ($62900 x 3%)] 61013 (To record sales on account) Jun. 12, 2017 Cash 61013 Accounts receivable 61013 (To record collections on account)

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